- Local and import PVC prices plunged in March due to weak demand
- Q1 2020 mentioned as an off-season for the PVC market in Indonesia
- There are chances for a further decrease in prices following the slow demand
Throughout Q1 2020, the price trend for local offers in Indonesia's PVC market were mostly on an upswing but started to plunge approaching the end of the quarter. For January deliveries, the offers for ethylene-based PVC from several producers surfaced with an increase of $10/ton. Meanwhile, on February 3, the leading Indonesian PVC producer has announced February delivery offers and applied an increase of $20/ton. Follow suit, another local PVC producer also applied upward adjustment for February delivery offers by $20/ton. At the end of the Q1 2020, some local converters received March delivery offers from the leading Indonesian PVC producer with an upward adjustment of $10/ton. Contrastingly, another PVC producer in the country lowered March delivery offers by $60/ton considering demand conditions at that time. All price changes were on a monthly interval, SSESSMENTS.COM noted.
Alike with the domestic market, import PVC offers in Indonesia also showed an uptrend in the first two months, yet, the prices were in free fall in the final month of the quarter. As SSESSMENTS.COM noted, January shipment offers from the leading Taiwanese PVC producer increased by $10/ton. For February shipment, the offers from the leading Taiwanese PVC producer emerged in the market with an upsurge of $20/ton. At the same time, a Thai PVC producer also initiated a price increment of $40/ton. Moving to the following month, the leading Taiwanese PVC producer raised their offers again by $10/ton for March shipment. Meanwhile, March shipment offers from a Thai PVC producer were hiked by $30/ton on the back of limited allocation stemming from water supply issues at its PVC plant. In March, considering the weak demand, the leading Taiwanese PVC producer reported trimming their April shipment offers by $50/ton. Similarly, April shipment offers from a Thai PVC producer have emerged with a decrement of $40/ton. All offers were on a monthly comparison. During March, Indonesian buyers were uninterested in taking import cargoes due to Rupiah depreciation against the greenback.
Overall, buying sentiment was weak as traditionally, Q1 is an off-season for the PVC market in the country. At the beginning of the month, some converters were procuring on an as-needed basis, while some others already have sufficient supply. At that time, sales for end-products were mostly dampened by the rainy season and Lunar New Year holiday, except for PVC raincoats. In February, the impact of the Coronavirus outbreak started to kick in and kept buyers in cautious mode. Besides, limited government projects also eroded buying sentiment. In the following month, buying sentiment was further deteriorated by the intensified Coronavirus spreads, plunge in crude oil prices and depreciation of Indonesian Rupiah against the US Dollar. Since the sales for end-product were sluggish during Q1 2020, some manufacturers decided to reduce the operating rate to offset the impact, SSESSMENTS.COM was told.
On the supply front, the overall availability of PVC was mostly sufficient during the quarter. However, in February, Indonesia’s Sulfindo reportedly had a tight supply on their ethylene-based PVC K-57 grade. On the plant news, Indonesia’s Asahimas Chemical (ASC) shut its 150,000 tons/year VCM line no.1 for maintenance purposes from February to mid-March. As scheduled, the producer’s VCM lines resumed operation by mid March and on March 11, the producer source commented that all VCM lines were already running normally. SSESSMENTS.COM was also informed that Standard Toyo Polymer plans to shut its 82,000 tons/year PVC plant after Eid Al-Fitr for turnaround maintenance. At time of publication, the exact maintenance schedule is not ascertained yet.
Looking forward into Q2 2020, Indonesian market players contacted by SSESSMENTS.COM believe that the market for PVC, in general, will remain sluggish amid the Coronavirus issues. As such, PVC prices are expected to decrease further.
Range of local/localized ethylene-based PVC transactions in January, FD Indonesia basis and excluding 10% VAT in all terms
| Origin | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term |
|---|
| Indonesia | Buy Idea | USD | 900-910 | - | Cash In Advance |
| Indonesia | Buy Idea | USD | 940 | - | 30 Days Credit Term |
| Indonesia | Buy Idea | USD | 990 | - | 45 Days Credit Term |
| Indonesia | Offer Given | USD | 900-950 | - | Cash In Advance |
| Indonesia | Offer Given | USD | 880-940 | - | 30 Days Credit Term |
| Indonesia | Offer Received | USD | 870-930 | - | Cash In Advance |
| Indonesia | Offer Received | USD | 920-950 | - | 30 Days Credit Term |
| Indonesia | Offer Received | USD | 990 | - | 45 Days Credit Term |
| Indonesia | Purchased | IDR | 13,700,000 | 820 | Cash In Advance |
| Indonesia | Purchased | USD | 870-905 | - | Cash In Advance |
| Indonesia | Purchased | USD | 930-960 | - | 30 Days Credit Term |
| Indonesia | Purchased | USD | 990 | - | 45 Days Credit Term |
| Indonesia | Sell Idea | USD | 950-960 | - | 30 Days Credit Term |
| Indonesia | Sold | USD | 890-950 | - | Cash In Advance |
| Thailand | Sold | USD | 965-990 | - | 60 Days Credit Term |
Range of import PVC transactions in January, CIF Indonesia Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| China | Acetylene-based | Buy Idea | 860 | LC at sight |
| China | Acetylene-based | Offer Received | 925-935 | LC at sight |
| South Korea | Ethylene-based | Offer Received | 870 | LC at sight |
| South Korea | Ethylene-based | Buy Idea | 860 | LC at sight |
| Taiwan | Ethylene-based | Offer Received | 870 | LC at sight |
| Taiwan | Ethylene-based | Buy Idea | 860 | LC at sight |
| Thailand | Ethylene-based | Bid Given | 875 | LC at sight |
| Thailand | Ethylene-based | Purchased | 890 | LC at sight |
| Thailand | Ethylene-based | Offer Received | 930 | LC 60 days |
| Thailand | Ethylene-based | Bid Given | 910 | LC 60 days |
| Thailand | Ethylene-based | Purchased | 905 | LC 60 days |
Range of local/localized ethylene-based PVC transactions in February, FD Indonesia basis and excluding 10% VAT
| Origin | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term |
|---|
| Indonesia | Buy Idea | USD | 920 | - | Cash In Advance |
| Indonesia | Offer Given | USD | 920-980 | - | Cash In Advance |
| Indonesia | Offer Given | USD | 940-970 | - | 30 Days Credit Term |
| Indonesia | Offer Received | USD | 900-980 | - | Cash In Advance |
| Indonesia | Offer Received | USD | 950-980 | - | 30 Days Credit Term |
| Indonesia | Purchased | USD | 880-920 | - | Cash In Advance |
| Indonesia | Purchased | USD | 955-980 | - | 30 Days Credit Term |
| Indonesia | Purchased | USD | 1,010 | - | 60 Days Credit Term |
| Indonesia | Sell Idea | USD | 900-920 | - | Cash In Advance |
| Indonesia | Sell Idea | USD | 960-970 | - | 30 Days Credit Term |
| Indonesia | Sold | USD | 940-970 | - | 30 Days Credit Term |
| Southeast Asia | Offer Received | IDR | 14,000,000 | 839 | Net 30 days |
Range of import PVC transactions in February, CIF Indonesia Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| China | Acetylene-based | Offer Received | 870 | LC at sight |
| China | Acetylene-based | Offer Received | 840 | LC 30 days |
| China | Acetylene-based | Bid Given | 830 | LC at sight |
| Japan | Ethylene-based | Offer Received | 900 | LC at sight |
| Japan | Ethylene-based | Bid Given | 870 | LC at sight |
| Thailand | Ethylene-based | Offer Received | 935 | LC at sight |
Range of local/localized PVC transactions in March, FD Indonesia basis and excluding 10% VAT in all terms
| Origin | Product | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term |
|---|
| China | Acetylene-based | Offer Received | USD | 960 | - | Cash In Advance |
| China | Acetylene-based | Offer Given | USD | 950 | - | 60 Days Credit Term |
| Indonesia | Ethylene-based | Offer Given | IDR | 13,000,000-13,500,000 | 779-808 | Cash In Advance |
| Indonesia | Ethylene-based | Offer Given | USD | 850-980 | - | Cash In Advance |
| Indonesia | Ethylene-based | Offer Received | USD | 910-980 | - | Cash In Advance |
| Indonesia | Ethylene-based | Offer Received | USD | 950-990 | - | 30 Days Credit Term |
| Indonesia | Ethylene-based | Offer Received | USD | 1,010 | - | 45 Days Credit Term |
| Indonesia | Ethylene-based | Purchased | USD | 900-980 | - | Cash In Advance |
| Indonesia | Ethylene-based | Purchased | USD | 950-990 | - | 30 Days Credit Term |
| Indonesia | Ethylene-based | Purchased | USD | 1,010 | - | 45 Days Credit Term |
| Indonesia | Ethylene-based | Sell Idea | USD | 990* | - | Cash In Advance |
| Indonesia | Ethylene-based | Sell Idea | USD | 900-920 | - | Cash In Advance |
| Indonesia | Ethylene-based | Sold | USD | 980 | - | Cash In Advance |
| Indonesia | Ethylene-based | Sold | USD | 930*-960* | - | Cash In Advance |
| Southeast Asia | Ethylene-based | Offer Received | IDR | 14,000,000 | 839 | 30 Days Credit Term |
| Thailand | Ethylene-based | Offer Received | USD | 870-880 | - | 30 Days Credit Term |
| Thailand | Ethylene-based | Offer Given | USD | 990 | - | 60 Days Credit Term |
| Thailand | Ethylene-based | Sold | USD | 990 | - | 60 Days Credit Term |
Description: *Transactions for March shipment
Range of import PVC transactions in March, CIF Indonesia Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| China | Acetylene-based | Offer Received | 830-860 | LC at sight |
| China | Acetylene-based | Purchased | 825 | LC 60 days |
| Thailand | Ethylene-based | Bid Given | 890 | LC at sight |
| Thailand | Ethylene-based | Offer Received | 895 | LC 60 days |
| Taiwan | Ethylene-based | Offer Received | 830 | LC at sight |
| USA | Ethylene-based | Offer Received | 880 | LC at sight |
| Thailand | Ethylene-based | Purchased | 925 | LC 60 days |
Tags: Asia Pacific,English,Indonesia,PVC,Quarterly,SEA
Published on April 6, 2020 3:48 PM (GMT+8)
Last Updated on April 6, 2020 3:48 PM (GMT+8)
