Vietnamese PVC producers contacted by SSESSMENTS.COM revealed their plans to set July delivery offers following the global market trend, despite a shift in domestic demand amid the traditional low season. As of June 15, both PVC producers in Vietnam have yet to announce their July delivery offers to the market after previously managed to sell out allocations for June delivery earlier this month. One of the producers mentioned a plan to announce offers within this week with sell ideas above VND19,000,000/ton ($815/ton)-level excluding VAT, yet the exact price level still needs to be discussed. Citing the significant price increase in the global market for July shipment, the producer opined that Vietnamese buyers would be able to accept such a level.
Likewise, another local PVC producer in the country revealed a plan to increase July delivery offers by $90-100/ton in USD equivalent, in line with the significant increment made by foreign PVC producers. As stated to SSESSMENTS.COM, the producer found it necessary to follow the global market trend since the costs of production also increased swiftly.
As SSESSMENTS.COM noted, domestic PVC demand in Vietnam has started to wane amid the rainy season in some parts of the country. Both producers claimed that rainy season in the country, especially in the southern part of Vietnam, has yet to affect PVC demand significantly since the intensity is not that high. Still, one of the producers acknowledged that outlook for PVC market in Vietnam entering July is not optimistic since raindrops will reach its peak by that time.
