A Vietnamese PVC producer revealed to SSESSMENTS.COM that the company has announced August delivery offers to the domestic market this week. As informed, the producer’s offers for local ethylene-based PVC cargoes emerged in the market between VND19,800,000-20,400,000/ton ($853-879/ton), or at VND500,000/ton ($21.5/ton) higher than the offer level available for July delivery. So far, the producer has managed to clinch some deals at the initial offer level. All offers are on cash, FD Vietnam basis and excluding 10% VAT.
The producer confirmed that the company is in a sales struggle as seasonal slowdown bites. Most converters in Vietnam are still refrained from purchasing activity amid a massive slump in demand from the end-user segment. Although domestic demand remains weak amid the lull seasonal demand, the producer has no intention to divert the allocation to the export market, SSESSMENTS.COM was told.
Near-term outlook for Vietnam PVC market is dim amid the traditional low demand in the third quarter of 2020, as stated to SSESSMENTS.COM. The producer believes that a further price increase is not a viable option as supply overhang and demand slowdown is predicted to continue weighing on the market sentiment. As seasonal slowdown hits, buyers show a stiff resistance toward higher offer levels. However, the producer believes that sales will eventually return to positive growth in Q4.
