As stated to SSESSMENTS.COM, a Philippines PVC producer has announced June delivery offers to the local market. Previously, the producer found difficulties in arranging materials delivery to customers as the pandemic brought urgent challenges for the logistics and shipping industry in the Philippines. As such, the producer pushed back its fresh offers announcement to June, once lockdown is lifted after a nearly three-month period of isolation. Current ethylene-based PVC offers from the producer are available in the market between PHP48,000-49,000/ton ($952-972/ton), or PHP8,000/ton ($159/ton) lower than offer level available for March delivery. All offers are on 90 days credit terms, FD Philippines basis and including 12% VAT.
From the producer’s end, overall market sentiment and domestic demand remain healthy as most customers continue to purchase in the same quantity as before the lockdown. On the production front, the producer is still running at a reduced capacity of between 85-90% from the normal production rate. As the country continues to record more coronavirus cases, market talks have it that the authorities in the Philippines will announce their decision to lift, extend or modify the lockdown measures being enforced to curb the spread of the highly contagious disease by Monday, June 15. To date, the number of confirmed cases in the Philippines breached 22,000-mark, while the death toll now stands at 1,011. “If the government agreed to reinforce the lockdown, we have no choice but to follow employees decisions regarding the production. Of course, we would be glad if our employees prefer to stay in on the site and keep the production running. However, if they prefer to leave the site and stay at home, we would not be able to continue the production activities until further notice,” the producer explained to SSESSMENTS.COM.
More added, the producer opined to SSESSMENTS.COM that most market players in the Philippines will reluctant to accept a price increase of between $90-100/ton for July shipment, asserting that the offer level will be unworkable in the Philippines market as the prices are increasing rapidly and the government threatens a return to lockdown.
