A Vietnamese PVC producer sold-out allocation for July delivery in the midst of lacklustre demand, SSESSMENTS.COM was told. This month, not because of the strong demand in the domestic market, the producer managed to sell all allocations for July delivery owing to backlogs from the last few months. The deals were mostly concluded at the initial offer level for the regular volume of purchases and between VND100,000-200,000/ton ($4-8/ton) lower than the initial offers for purchasing at a big volume.
Demand-wise, the producer told SSESSMENTS.COM that buying sentiment has softened compared to last month due to the rainy season. Added more, market players are also anticipating the arrival of storms; which will also lead to low demand for raw materials. No wonder why this time of the year is called the beginning of the lean season in Vietnam, according to the traditional pattern. However, it also still heavily depends on the price levels, if the prices are attractive enough, then buyers will likely continue to buy despite the rainy season. In the days to come, the producer opined that both local and international price trend will remain stable, while demand is expected to weaken but would not be not significant.
