An Indonesian trader contacted by SSESSMENTS.COM’s team mentioned that PVC price trend in the international market is not in sync with demand in the Indonesia market. The trader revealed that import offers for ethylene-based PVC cargoes of Thailand origin to Indonesia for August shipment went up by $30/ton as compared to the offers for July shipment. The trader secured some volumes at the initial level and managed to sell it to customers at $70/ton higher than the cost of procurements. Although managed to achieve some deals, the trader stated that most buyers are hesitating to do the procurement activities due to the firm offers. Low-priced cargoes are preferable than high-quality cargoes. Since demand for the end-products has yet to fully recover, some converters opted to demote the quality rather than raise the price of finished products. Regarding this situation, the trader expects that offers for August delivery from the local producers would be corrected in-line with PVC prices in the international market, and by then, hopefully, buyers’ acceptance towards high prices would be better.
Transaction for local ethylene-based PVC on credit 60 days, FD Indonesia basis, all excluding 10% VAT
Import ethylene-based PVC offers on LC 60 days, CIF Indonesia Main Port basis
