A distributor revealed to SSESSMENTS.COM that a Thai PVC producer has announced July shipment offers to Bangladesh market but gained cold responses from buyers. According to the distributor, the Thai producer applied a price increase of $100/ton on ethylene-based PVC cargoes as compared to June shipment. Current offers from the producer are available at $860/ton on LC at sight, CFR Bangladesh Main Port basis.
However, the producer received negative responses from the customers in Bangladesh as the current offer level is deemed too high, between $20-30/ton higher than the leading Taiwanese PVC producer and Chinese PVC producer’s price list. Besides, a large number of converters in the country are running at a reduced capacity of between 30-40% from the normal output as monsoon season sets in. The distributor reported to SSESSMENTS.COM that heavy rainfall has occurred in various places for the last two days after the monsoon winds begin to kick into gear.
The distributor mentioned that authorities in Bangladesh have decided to impose area-wise lockdowns in capital Dhaka, amid a rise in cases of the novel coronavirus, which has claimed 1,305 lives and infected 98,489 people in the South Asian nation so far. As per the criteria, 48 areas under the two city corporations in the capital will be in red zones. SSESSMENTS.COM noted that the government also extended the restrictions on movement until June 30 to curb further spread of the novel coronavirus. Regarding the impact on the industry, the distributor commented that the impact will depend on the factory’s location. Factories located in red zones will not be allowed to operate as the government has declared lockdown restrictions. Meanwhile, if the factories are located in green zones, it may be allowed to continue the production.
