A Vietnamese trader contacted by SSESSMENTS.COM commented that unfavourable sentiment in the Vietnam market could impact the upcoming pricing decision from a Vietnamese PVC producer. As reported, the producer has yet to release fresh PVC offers to the local market, however, market talks have it that the producer will set the PVC prices at a higher level than the local competitor’s offers. Local ethylene-based PVC prices from one of the Vietnamese producers stand at VND19,500,000/ton ($837/ton), while buying ideas from the trader's side is already at VND200,000/ton ($8/ton) lower. At the same time, the trader noticed that buyers’ buy ideas for PVC cargoes are around VND19,400,000/ton ($833/ton), which makes it difficult for a trader to conclude the deals. All local offers are on cash, FD basis and excluding 10% VAT.
Demand-wise, the trader reported that Vietnam market is now in the traditional low season for PVC as heavy rains descended around the country and impacted finished product demand, especially from the construction sector. The trader is having difficulties to conclude deals since most converters are running the production at reduced rate, while some others are away from their desk. Last week, the company received inquiries, but the converters opted to back out after learning the offers. SSESSMENTS.COM observed that the Vietnam market still has not accepted high-level prices for local PVC cargoes.
Speaking about the outlook, the trader anticipated that demand will be flat in the upcoming month. SSESSMENTS.COM noted that most Vietnamese converters are still holding sufficient stock amid the sluggish demand for the end products, market talks have it that some of it may even have sufficient supply until the end of September. However, there is some room for a local ethylene-based PVC producer to follow the international uptrend and increase the offers.
