A local producer in Vietnam informed SSESSMENTS.COM that the company has sold out PVC allocation for June delivery. As contacted on June 8, a producer source stated that the company has sold out all June delivery allocation since last week with deals mostly achieved between VND17,500,000-17,600,000/ton ($752-756/ton) on cash, FD Vietnam basis and excluding 10% VAT.
Demand-wise, according to the producer, PVC demand has started to soften as some buyers showed resistance towards higher PVC prices, while the rest still have high inventory on hand. Additionally, the rainy season has slightly affected PVC demand in Vietnam, although it has not affected buying sentiment significantly.
For the outlook, the producer opined that considering the better global market conditions, the leading Taiwanese PVC producer will increase July shipment offers. While domestic PVC prices in Vietnam will most likely follow the international trend. Buying sentiment will be lifted if the price increment is not too high. In contrast, if the price increment is too high, it might hinder buyers from making procurements, as stated to SSESSMENTS.COM.
