A Thai PVC producer adjusted down April shipment offers further, a trader based in Malaysia informed SSESSMENTS.COM on March 26. As reported, the trader received offers from the Thai PVC producer at $825/ton on LC at sight, DAP Malaysia basis or $40/ton lower than the initial offers for April shipment released last week. As SSESSMENTS.COM noted, another Thai PVC producer also adjusted down their April shipment offers to Bangladesh market earlier this week. The producer trimmed offers by $50/ton from the initial April shipment offers announced a week earlier, and eventually managed to conclude some deals at the adjusted level. Deals captured at $835/ton on LC at sight, CFR Chittagong Port.
The muted market amid Coronavirus issue and lockdown in several countries are the major reason pushing the producers to adjust down their offers further, as cited to SSESSMENTS.COM. A South Korean prime PVC exporter revealed that their customers in India cancelled orders as factories were forced to shut amid lockdown imposed by the government. Additionally, market talks have it that cargoes of the leading Taiwanese PVC producer sold to Southeast Asia market at $760/ton-level or even below as the suppliers could not move cargoes to India due to nationwide lockdown in the country. The official offers announced on March 17 by the producer for April shipment to Southeast Asia and China were at $820/ton while India at $860/ton on LC at sight, CIF/CFR Main Port basis.
Likewise, PVC producers in China are also under a lot of pressure in moving cargoes, SSESSMENTS.COM was told. As of Wednesday, March 25, one of the local acetylene-based PVC producers revised down offers between CNY50-100/ton ($7-14/ton) from Monday’s level. Additionally, market talks have it that China’s largest acetylene-based PVC producer is offering cargoes at $700/ton on LC at sight, FOB China basis this week.
