A local PVC producer in Vietnam informed SSESSMENTS.COM that the company has sold out all allocation for May delivery to the local market. According to the producer, deals for ethylene-based PVC cargoes mostly concluded at the same level to the initial offers. However, some deals were achieved at VND200,000/ton ($8/ton) lower on the low-end of the price range.
Demand-wise, overall PVC demand at the producer’s end is quite healthy. However, despite a hefty adjustment for May delivery offers, some of the producer’s customers opined that PVC prices should be lower. In contrast, the producer shared a different opinion regarding June delivery offers. As stated to SSESSMENTS.COM, the lockdown relaxation in several countries might boost demand, however, as the inventory at the suppliers’ end will remain high, the condition will be balanced out. As such, June delivery offers from the producer will most likely roll over from May, in line with the producer’s expectation for June shipment offers from foreign suppliers.
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