A Malaysian trader discloses the possibility of further price adjustment for import Chinese PVC cargoes amid the current market condition. For this week, June shipment offers from a Thai PVC producer is no longer available as the producer has sold out the allocation since the previous week. Deals were concluded at $695/ton on LC at sight, CIF Malaysian Main Port basis, equivalent to around $720-725/ton on DAP Malaysia basis. The trader stated that the Thai and the leading Indonesian PVC producer were selling quite well to the Malaysia market for June as the offers for China PVC resins were deemed too high. Although the offers for Chinese cargoes were deemed too high, the trader opined to SSESSMENTS.COM that there is a possibility for prices to continue to increase and reach $800/ton-level or above this week as the offers in China domestic market continue to go up. Moreover, Chinese producers already quoted offers at $780-790/ton-level on CIF basis previously.
For the demand, downstream factories are still facing difficulties to get orders from the customers. Most converters are operating at 50% from the normal rate. While for PVC shoe manufacturers, the operating rates could be as low as 20-30% with the highest at 70% from the normal capacity. “We think the demand from the construction sector will decrease in June, as in May, converters still have some backlogs to clear. While in June, it will be difficult to get fresh orders from the customers considering labor constraints in the construction sector,” the trader added to SSESSMENTS.COM.
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