- Local PVC offers in the region generally captured on an uptrend
- PVC resins demand reported subdued
- PVC prices will decrease further in the upcoming months
In January, local ethylene-based PVC offers in Southeast Asia region were captured on an uptrend. Compared to December, January delivery offers from local PVC producers in Thailand increased between THB500-1,000/ton ($15-30/ton). While in the Philippines, the offers moved up by PHP1,000/ton ($20/ton) and between VND200,000-400,000/ton ($8-17/ton). Likewise, February delivery offers from a local PVC producer in Thailand increased by THB1,000/ton ($30/ton), while in the Philippines, due to the limited supply, a Vietnamese PVC producer applied a significant increase of VND1,000,000/ton ($42/ton). Entering March, SSESSMENTS.COM’s data showed that local offers in Thailand were still on an uptrend with an increment of between THB1,000-1,500/ton ($30-46/ton). However, in the Philippines, a local PVC producer adjusted down local PVC offers by PHP1,000/ton ($20/ton) in the second half of March citing slow market amid the Coronavirus pandemic.
In the import market, the leading Taiwanese PVC producer decided to announce February shipment offers earlier than the schedule with an increase of $20/ton. Likewise, February shipment offers from a Thai PVC producer to Malaysia and the leading Indonesian PVC producer increased by the same amount. All offers compared to January shipment. While March shipment offers from the leading Taiwanese PVC producer emerged with an increase of $10/ton as compared to February shipment. Follow-suit, March shipment offers from Thai and Indonesian PVC producers to Malaysia went up by $15/ton and $10/ton respectively as compared to the same period. However, at the beginning of March, foreign suppliers decided to postpone the announcement for April shipment offers considering the significant drop in crude oil prices. While coming to the end of March, Malaysian market players informed SSESSMENTS.COM on receiving April shipment offers from Thai PVC producers at $40-80/ton lower than March shipment. Detailed information for Indonesia and Vietnam market is available in QuarterlySSESSMENTS of the respective countries.
In general, PVC demand in the Southeast Asia region was considered subdued in the first quarter of 2020. Limited activities recorded due to the Lunar New Year holiday, the slump in crude oil prices and the Coronavirus outbreak. Moreover, the lockdown in several countries has led factories to shut or cut production rates. However, market players informed SSESSMENTS.COM that PVC demand in the Philippines in January and February was strong due to the healthy demand for PVC pipe, dry season, and ongoing government projects.
In the production sector, PVC plant at Thai Plastic and Chemicals, a subsidiary of SCG Chemicals Co., Ltd, with a capacity of 530,000 tons/year, located in Map Ta Phut, Rayong Province, Thailand was brought back on-stream on January 5 following maintenance shutdown on December 26. While in the Philippines, General Chemical & Resins (GenChem)’s 20,000 tons/year PVC plant was forced to shut after the government announced a lockdown started from March 17 as workers could not reach the factory, as informed to SSESSMENTS.COM.
Entering Q2 2020, the majority of Southeast Asian market players opined to SSESSMENTS.COM that buyers are expected to stay on the sidelines and halt procurement activities amid the Coronavirus pandemic. As such, PVC prices will decrease further and PVC demand in the region would remain sluggish.
Range of local ethylene-based PVC transactions in January on FD basis, excluding VAT (except in PHP term including 12% VAT, all equivalent in USD excluding VAT)
| Origin | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term | Delivery Location |
|---|
| Philippines | Bid Given | PHP | 51,500 | 906 | Cash In Advance | Philippines |
| Philippines | Offer Given | PHP | 55,000-56,000 | 968-986 | 90 Days Credit Term | Philippines |
| Philippines | Offer Received | PHP | 52,000 | 915 | Cash In Advance | Philippines |
| Philippines | Purchased | PHP | 51,500 | 906 | Cash In Advance | Philippines |
| Thailand | Buy Idea | THB | 28,000 | 851 | 75 Days Credit Term | Thailand |
| Thailand | Offer Given | THB | 27,500-28,000 | 835-851 | 60 Days Credit Term | Thailand |
| Thailand | Offer Given | THB | 27,500-28,000 | 835-851 | Cash In Advance | Thailand |
| Thailand | Offer Received | THB | 27,250 | 828 | 60 Days Credit Term | Thailand |
| Thailand | Offer Received | THB | 27,000-28,500 | 820-866 | 75 Days Credit Term | Thailand |
| Thailand | Offer Received | THB | 27,500-28,000 | 835-851 | Cash In Advance | Thailand |
| Thailand | Purchased | THB | 27,500 | 835 | Cash In Advance | Thailand |
| Thailand | Sold | THB | 27,500-28,000 | 835-851 | 60 Days Credit Term | Thailand |
Range of import PVC transactions in January
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term | Delivery Term | Delivery Country |
|---|
| China | Acetylene-based | Offer Received | 870 | LC at sight | CIF | Malaysia |
| China | Acetylene-based | Purchased | 860 | LC at sight | CIF | Malaysia |
| China | Acetylene-based | Offer Given | 860 | LC at sight | CIF | Southeast Asia |
| Indonesia | Ethylene-based | Sell Idea | 870 | LC at sight | CIF | Malaysia |
| Indonesia | Ethylene-based | Buy Idea | 860-870 | LC at sight | CIF | Malaysia |
| Indonesia | Ethylene-based | Offer Received | 865 | LC at sight | CIF | Malaysia |
| Indonesia | Ethylene-based | Sell Idea | 870 | LC at sight | CIF | Singapore |
| Japan | Ethylene-based | Offer Given | 870 | LC at sight | CIF | Southeast Asia |
| Japan | Ethylene-based | Sold | 860-870 | LC at sight | CIF | Southeast Asia |
| South Korea | Ethylene-based | Offer Received | 840-850 | LC at sight | CIF | Malaysia |
| Taiwan | Ethylene-based | Offer Given | 860 | LC at sight | CIF | Southeast Asia |
| Thailand | Ethylene-based | Buy Idea | 885-890 | LC at sight | CIF | Malaysia |
| Thailand | Ethylene-based | Offer Given | 890-900 | LC at sight | CIF | Malaysia |
| Thailand | Ethylene-based | Offer Received | 895 | LC at sight | DAP | Malaysia |
| Thailand | Ethylene-based | Offer Received | 895 | TT | CIP | Malaysia |
| Thailand | Ethylene-based | Offer Given | 880-890 | LC at sight | CIF | Southeast Asia |
| USA | Ethylene-based | Sold | 850 | LC at sight | CIF | Southeast Asia |
Range of local/localized PVC transactions in February on FD basis, excluding VAT (except in PHP term including 12% VAT, all equivalent in USD excluding VAT)
| Origin | Product | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term | Delivery Location |
|---|
| China | Acetylene-based | Offer Given | MYR | 4,040 | 925 | Cash In Advance | Malaysia |
| China | Ethylene-based | Offer Given | MYR | 4,040 | 925 | Cash In Advance | Malaysia |
| Philippines | Ethylene-based | Offer Given | PHP | 56,000-57,000 | 986-1,003 | 30 Days Credit Term | Philippines |
| Philippines | Ethylene-based | Offer Given | PHP | 56,000-57,000 | 986-1,003 | 90 Days Credit Term | Philippines |
| Philippines | Ethylene-based | Offer Received | PHP | 52,000-52,750 | 915-928 | Cash In Advance | Philippines |
| Thailand | Ethylene-based | Offer Given | THB | 28,000-29,000 | 851-881 | 60 Days Credit Term | Thailand |
| Thailand | Ethylene-based | Offer Given | THB | 28,000-29,000 | 851-881 | Cash In Advance | Thailand |
| Thailand | Ethylene-based | Offer Received | THB | 29,000 | 881 | 30 Days Credit Term | Thailand |
| Thailand | Ethylene-based | Offer Received | THB | 28,000-29,000 | 851-881 | 60 Days Credit Term | Thailand |
| Thailand | Ethylene-based | Purchased | THB | 28,000 | 851 | 60 Days Credit Term | Thailand |
Range of import PVC transactions in February
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term | Delivery Term | Delivery Country |
|---|
| China | Acetylene-based | Offer Received | 815-865 | LC at sight | CIF | Malaysia |
| China | Acetylene-based | Offer Received | 820-830 | LC at sight | CIF | Myanmar |
| China | Ethylene-based | Offer Received | 860-890 | LC at sight | CIF | Malaysia |
| China | Ethylene-based | Purchased | 860 | LC at sight | CIF | Malaysia |
| China | Ethylene-based | Offer Received | 900 | LC at sight | CIF | Myanmar |
| China | Ethylene-based | Offer Received | 900 | LC at sight | CFR | Myanmar |
| Indonesia | Ethylene-based | Bid Given | 860 | LC at sight | CIF | Malaysia |
| Indonesia | Ethylene-based | Offer Given | 880 | LC at sight | CFR | Malaysia |
| Indonesia | Ethylene-based | Offer Given | 870-880 | LC at sight | CIF | Malaysia |
| Indonesia | Ethylene-based | Offer Received | 870-880 | LC at sight | CIF | Malaysia |
| Indonesia | Ethylene-based | Purchased | 865-880 | LC at sight | CIF | Malaysia |
| Indonesia | Ethylene-based | Offer Given | 880 | LC at sight | CFR | Singapore |
| Japan | Ethylene-based | Offer Given | 880 | LC at sight | CIF | Southeast Asia |
| Japan | Ethylene-based | Sold | 880 | LC at sight | CIF | Southeast Asia |
| South Korea | Ethylene-based | Offer Received | 850-860 | LC at sight | CIF | Malaysia |
| South Korea | Ethylene-based | Purchased | 850-860 | LC at sight | CIF | Malaysia |
| Taiwan | Ethylene-based | Offer Received | 870 | LC at sight | CIF | Malaysia |
| Taiwan | Ethylene-based | Offer Received | 860 | LC at sight | CIF | Myanmar |
| Taiwan | Ethylene-based | Offer Given | 870 | LC at sight | CIF | Southeast Asia |
| Taiwan | Ethylene-based | Sold | 850-870 | LC at sight | CIF | Southeast Asia |
| Thailand | Ethylene-based | Offer Given | 900-910 | LC at sight | CFR | Malaysia |
| Thailand | Ethylene-based | Offer Given | 910-920 | LC at sight | CIF | Malaysia |
| Thailand | Ethylene-based | Offer Received | 905-910 | LC at sight | DAP | Malaysia |
| Thailand | Ethylene-based | Offer Received | 900-955 | LC at sight | CIF | Malaysia |
| Thailand | Ethylene-based | Offer Received | 910 | TT | CIP | Malaysia |
| Thailand | Ethylene-based | Offer Received | 910 | TT | DAP | Malaysia |
| Thailand | Ethylene-based | Offer Received | 930-940 | LC at sight | DAP | Malaysia |
| Thailand | Ethylene-based | Purchased | 900 | LC at sight | CIF | Malaysia |
| Thailand | Ethylene-based | Purchased | 910 | TT | CIP | Malaysia |
| Thailand | Ethylene-based | Purchased | 910 | TT | DAP | Malaysia |
| Thailand | Ethylene-based | Sold | 900-910 | LC at sight | CFR | Malaysia |
| Thailand | Ethylene-based | Offer Given | 900-910 | LC at sight | CFR | Philippines |
| Thailand | Ethylene-based | Sold | 900-910 | LC at sight | CFR | Philippines |
Range of local ethylene-based PVC transaction in March on FD basis, excluding VAT (except in PHP term including 12% VAT, all equivalent in USD excluding VAT)
| Origin | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term | Delivery Country |
|---|
| Philippines | Offer Given | PHP | 55,000-57,000 | 968-1,003 | 90 Days Credit Term | Philippines |
| Thailand | Buy Idea | THB | 29,000 | 881 | 30 Days Credit Term | Thailand |
| Thailand | Offer Given | THB | 29,000-29,500 | 881-896 | Cash In Advance | Thailand |
| Thailand | Offer Received | THB | 28,500-29,500 | 866-896 | 30 Days Credit Term | Thailand |
| Thailand | Purchased | THB | 28,000-29,500 | 851-896 | 30 Days Credit Term | Thailand |
Range of import PVC transactions in March
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term | Delivery Term | Delivery Country |
|---|
| China | Acetylene-based | Offer Received | 810 | LC at sight | CIF | Malaysia |
| China | Acetylene-based | Offer Received | 840 | LC at sight | CIF | Thailand |
| China | Ethylene-based | Offer Received | 820 | LC at sight | CIF | Malaysia |
| China | Ethylene-based | Offer Received | 820-825 | LC at sight | CIF | Myanmar |
| Indonesia | Ethylene-based | Offer Given | 820 | LC at sight | CFR | Southeast Asia |
| Indonesia | Ethylene-based | Sold | 870 | LC at sight | CFR | Malaysia |
| Indonesia | Ethylene-based | Sold | 800-820 | LC at sight | CIF | Malaysia |
| Indonesia | Ethylene-based | Sold | 870 | LC at sight | CFR | Singapore |
| Indonesia | Ethylene-based | Sold | 800-820 | LC at sight | CIF | Singapore |
| Japan | Ethylene-based | Offer Received | 880 | LC at sight | CIF | Malaysia |
| Japan | Ethylene-based | Offer Given | 830 | LC at sight | CIF | Southeast Asia |
| Japan | Ethylene-based | Sold | 830 | LC at sight | CIF | Southeast Asia |
| South Korea | Ethylene-based | Offer Received | 800 | LC at sight | CIF | Malaysia |
| South Korea | Ethylene-based | Offer Received | 890 | LC at sight | CIF | Thailand |
| Taiwan | Ethylene-based | Offer Given | 810-820 | LC at sight | CIF | Southeast Asia |
| Thailand | Ethylene-based | Offer Received | 800-870 | LC at sight | CIF | Malaysia |
| Thailand | Ethylene-based | Purchased | 860 | LC at sight | CIF | Malaysia |
| Thailand | Ethylene-based | Offer Received | 860 | TT | CIP | Malaysia |
| Thailand | Ethylene-based | Offer Received | 865 | LC at sight | DAP | Malaysia |
| Thailand | Ethylene-based | Offer Received | 825 | LC at sight | DAP | Malaysia |
| Thailand | Ethylene-based | Sold | 865 | LC at sight | DAP | Malaysia |
Tags: Asia Pacific,English,PVC,Quarterly,SEA
Published on April 8, 2020 1:00 PM (GMT+8)
Last Updated on September 24, 2020 5:01 PM (GMT+8)
