- Local PVC offers started to shift in May and June, especially in Thailand
- PVC demand in Southeast Asia was sluggish entering the second quarter of 2020
- PVC demand in the region expected to be slower as the rainy season intensifies
In April, local and import PVC prices in the Southeast Asia market were on a downtrend. In Thailand, local PVC prices for April delivery continue to decline week after week with a total decrease of THB2,500/ton ($80/ton) compared to March delivery. While in the Philippines, local PVC offers remain stable in the first half of April and stood between PHP55,000-56,000/ton ($1,109-1,129/ton) on 90 days credit term, FD Philippines basis and including 12% VAT. However, as the market became stagnant and coupled with maintenance shutdowns at the local producers’ plants, no offers were available in the second half of the month. In the import market, according to SSESSMENTS.COM’s pricing database, May shipment offers from the leading Taiwanese PVC producer dropped $160/ton compared to April shipment. Follow suit, Thai and Indonesian PVC producers also trimmed May shipment offers by the same amount. Meanwhile, May shipment offers from a Japanese PVC producer to the Southeast Asia market decreased by $190/ton compared to the same period. However, despite the hefty reduction, only limited deals were concluded.
In May, local PVC offers in Thailand captured at THB3,000/ton ($96/ton) on the monthly comparison. A local converter’s bid at THB2,500/ton ($80/ton) lower from the initial offer level was rejected citing that suppliers were only willing to give discounts up to THB1,000/ton ($32/ton) for a big volume of purchase. The offers remained stable until the end of May and stood at THB24,500-25,000/ton ($785-801/ton) depending on payment terms. While in the Philippines, there were no fresh offers reported as PVC plants at the local producers’ end remain shut in May amid the lockdown due to the Coronavirus. For import, at the beginning of May, a global trading house sold out May shipment allocation for Indonesian and Japanese PVC cargoes to Southeast Asia market with the deals concluded between $620-650/ton on LC at sight, CIF Southeast Asia Main Port basis. On May 19, the leading Taiwanese PVC producer announced June shipment offers with an increment of $40/ton from May shipment. Likewise, a Japanese PVC producer adjusted upwards June shipment offers by the same amount. However, the producer mentioned to SSESSMENTS.COM that satisfactory sales were only to the Vietnam market with the done deals concluded at the initial offer level at $680/ton on LC at sight, CIF Southeast Asia Main Port basis.
Entering June, local PVC offers in Thailand remain on an uptrend as a local producer announced June delivery offers at THB1,500/ton ($48/ton) higher compared to May delivery. In contrast, June delivery offers from a Philippines PVC producer dropped PHP8,000/ton ($161/ton) compared to the same period. From import, July shipment offers from Far East Asian PVC producers to Southeast Asia increased between $90-100/ton compared to June shipment. Likewise, July shipment offers from the leading Indonesian PVC producer to Malaysia surged by $80-90/ton on monthly comparison following the satisfactory sales at the beginning of June. Detailed information for Indonesia and Vietnam market is available in QuarterlySSESSMENTS of the respective countries.
PVC demand in Southeast Asia was sluggish entering the second quarter of 2020 as several countries in the region were under lockdown. In Malaysia, demand dropped as much as 90% as only 30% of PVC manufacturers received approval from the government to continue production with a maximum of 50% production rates. In Thailand, healthy demand was only reported from the pipe sector as the government kept projects to overcome the ongoing drought issue. PVC demand started to improve following the lockdown relaxation in several countries such as Malaysia and Thailand. While in the Philippines, the lack of manpower due to the public transportation issue still being the main problem; as such, some converters revealed to SSESSMENTS.COM that the company was unable to meet customers’ request despite the orders received. At the end of Q2, healthy demand recorded only in the domestic market. Buyers only purchase on a need basis, and due to this, they prefer to source from the domestic market. However, in Malaysia, the PVC market has improved especially for the compounding sector as most converters in this sector are currently running at 50-60% from normal capacity. On the supply side, there were no issues reported in the region.
On the production sector, Thailand’s SCG clarified that the company did not have any issues with the VCM plant, but the producer did not rule out possibilities for lower production rate ahead due to the drought in the country, however, the producer plans to conduct maintenance at the company 530,000 tons/year PVC plant for a week in July. While Philippines’ General Chemical & Resins Consortium Inc (GenChem) PVC plant with a capacity of 20,000 tons/year was shut amid the lockdown since March 2020 and was back on-stream on May 16 and currently running at full capacity, SSESSMENTS.COM noted.
For the outlook, market players believed that entering the third quarter of 2020, PVC demand in the region will be slower as the rainy season intensifies. As for pricing, PVC prices are expected to be on a downtrend as monsoon season continues to drench India market, the main PVC import market and benchmark for pricing, as stated to SSESSMENTS.COM.
Range of local ethylene-based PVC transactions in April 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 | 55,000-56,000 | 1,061-1,080 | 90 Days Credit Term | Philippines |
| Thailand | Offer Received | THB | 26,500-28,000 | 849-897 | 30 Days Credit Term | Thailand |
| Thailand | Offer Received | THB | 27,500 | 881 | 60 Days Credit Term | Thailand |
| Thailand | Offer Received | THB | 27,500 | 881 | 75 Days Credit Term | Thailand |
| Thailand | Offer Received | THB | 27,000 | 865 | Cash In Advance | Thailand |
| Thailand | Purchased | THB | 28,000 | 897 | 30 Days Credit Term | Thailand |
| Thailand | Purchased | THB | 27,500 | 881 | 60 Days Credit Term | Thailand |
Range of import PVC transactions in April
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term | Delivery Term | Delivery Country |
|---|
| China | Acetylene-based | Offer Received | 630-650 | LC at sight | CIF | Malaysia |
| Indonesia | Ethylene-based | Offer Received | 650 | LC at sight | CFR | Southeast Asia |
| Japan | Ethylene-based | Offer Given | 630-720 | LC at sight | CFR | Southeast Asia |
| Japan | Ethylene-based | Offer Given | 640-660 | LC at sight | CIF | Southeast Asia |
| Japan | Ethylene-based | Sold | 750-760 | LC at sight | CIF | Malaysia |
| Japan | Ethylene-based | Sold | 620 | LC at sight | CIF | Southeast Asia |
| Taiwan | Ethylene-based | Sell Idea | 610-630 | LC at sight | CFR | Southeast Asia |
| Taiwan | Ethylene-based | Offer Given | 660 | LC at sight | CIF | Southeast Asia |
| Taiwan | Ethylene-based | Offer Received | 670 | LC at sight | CIF | Thailand |
| Thailand | Ethylene-based | Offer Received | 670 | LC at sight | DAP | Malaysia |
| Thailand | Ethylene-based | Offer Received | 640-695 | LC at sight | CIF | Malaysia |
| Thailand | Ethylene-based | Sell Idea | 630-640 | LC at sight | CIF | Malaysia |
| Thailand | Ethylene-based | Sold | 670-680 | LC at sight | CIF | Malaysia |
| Thailand | Ethylene-based | Sold | 790 | LC at sight | CFR | Singapore |
Range of export PVC transactions in April on LC at sight, FOB Thailand basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| Thailand | Sell Idea | 620-630 |
Range of local ethylene-based PVC transactions in May on FD basis, excluding VAT
| Origin | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term | Delivery Country |
|---|
| Thailand | Bid Given | THB | 22,000 | 705 | 60 Days Credit Term | Thailand |
| Thailand | Offer Received | THB | 24,500 | 785 | 30 Days Credit Term | Thailand |
| Thailand | Offer Received | THB | 24,500 | 785 | 60 Days Credit Term | Thailand |
| Thailand | Offer Received | THB | 25,000 | 801 | 75 Days Credit Term | Thailand |
| Thailand | Purchased | THB | 24,500 | 785 | 30 Days Credit Term | Thailand |
| Thailand | Purchased | THB | 24,500 | 785 | 60 Days Credit Terms | Thailand |
| Thailand | Sell Idea | THB | 25,500-25,750 | 817-825 | Cash In Advance | Thailand |
Range of import PVC transactions in May
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term | Delivery Term | Delivery Country |
|---|
| China | Acetylene-based | Offer Received | 780-790 | LC at sight | CIF | Malaysia |
| China | Ethylene-based | Offer Received | 730-770 | LC at sight | CIF | Malaysia |
| China | Ethylene-based | Offer Received | 640 | LC at sight | CIF | Thailand |
| Indonesia | Ethylene-based | Offer Received | 650* | LC at sight | CIF | Malaysia |
| Indonesia | Ethylene-based | Purchased | 640* | LC at sight | CIF | Malaysia |
| Indonesia | Ethylene-based | Offer Given | 700 | LC at sight | CFR | Southeast Asia |
| Indonesia | Ethylene-based | Sold | 640-650 | LC at sight | CFR | Southeast Asia |
| Japan | Ethylene-based | Offer Given | 680 | LC at sight | CIF | Southeast Asia |
| Japan | Ethylene-based | Sold | 620 | LC at sight | CFR | Southeast Asia |
| Taiwan | Ethylene-based | Offer Given | 700 | LC at sight | CIF | Southeast Asia |
| Thailand | Ethylene-based | Offer Given | 650-725 | LC at sight | DAP | Malaysia |
| USA | Ethylene-based | Offer Given | 650-660 | LC at sight | CFR | Malaysia |
Description: *May shipment offers
Range of local PVC transactions in June 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 Country |
|---|
| China | Acetylene-based | Offer Given | MYR | 3,700 | 862 | 30 Days Credit Term | Malaysia |
| China | Ethylene-based | Offer Given | MYR | 3,700 | 862 | 30 Days Credit Term | Malaysia |
| Philippines | Ethylene-based | Offer Given* | PHP | 48,000-52,000 | 926-1003 | 90 Days Credit Term | Philippines |
| South Korean | Ethylene-based | Offer Given | MYR | 3,700 | 862 | 30 Days Credit Term | Malaysia |
| Thailand | Ethylene-based | Offer Given | THB | 25,500-26,000 | 817-833 | Cash In Advance | Thailand |
| Thailand | Ethylene-based | Offer Received | THB | 26,000 | 833 | 30 Days Credit Term | Thailand |
| Thailand | Ethylene-based | Offer Received | THB | 25,500-27,500 | 817-881 | 60 Days Credit Term | Thailand |
| Thailand | Ethylene-based | Sell Idea | THB | 26,500 | 849 | 60 Days Credit Term | Thailand |
Description: *June delivery offers
Range of import PVC transactions in June
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term | Delivery Term | Delivery Country |
|---|
| China | Acetylene-based | Offer Received | 800-830 | LC at sight | CIF | Malaysia |
| China | Acetylene-based | Offer Received | 800 | LC at sight | CIF | Malaysia |
| China | Acetylene-based | Offer Received | 810 | LC at sight | CIF | Malaysia |
| China | Ethylene-based | Offer Received | 830 | LC at sight | CIF | Malaysia |
| China | Ethylene-based | Offer Given | 790-800 | LC at sight | CFR | Southeast Asia |
| Indonesia | Ethylene-based | Offer Given | 780 | LC at sight | CIF | Malaysia |
| Indonesia | Ethylene-based | Offer Received | 690*-780** | LC at sight | CIF | Malaysia |
| Indonesia | Ethylene-based | Purchased | 690*-780** | LC at sight | CIF | Malaysia |
| Indonesia | Ethylene-based | Sold | 785 | LC at sight | CIF | Malaysia |
| Indonesia | Ethylene-based | Sold | 785 | LC at sight | CIF | Singapore |
| Indonesia | Ethylene-based | Offer Given | 780 | LC at sight | CIF | Southeast Asia |
| Japan | Ethylene-based | Sell Idea | 780-790 | LC at sight | CIF | Southeast Asia |
| Japan | Ethylene-based | Offer Given | 780 | LC at sight | CIF | Southeast Asia |
| Japan | Ethylene-based | Sold | 780 | LC at sight | CIF | Southeast Asia |
| Japan | Ethylene-based | Offer Received | 800** | LC at sight | CIF | Thailand |
| South Korea | Ethylene-based | Offer Received | 690*-790 | LC at sight | CIF | Malaysia |
| South Korea | Ethylene-based | Purchased | 690*-705* | LC at sight | CIF | Malaysia |
| Taiwan | Ethylene-based | Offer Given | 790**-820 | LC at sight | CIF | Southeast Asia |
| Taiwan | Ethylene-based | Sold | 790-820 | LC at sight | CIF | Southeast Asia |
| Thailand | Ethylene-based | Buy Idea | 810-850** | LC at sight | CIF | Malaysia |
| Thailand | Ethylene-based | Offer Given | 795 | LC at sight | CIF | Malaysia |
| Thailand | Ethylene-based | Offer Received | 765*-865** | LC at sight | CIF | Malaysia |
| Thailand | Ethylene-based | Offer Received | 730 | TT | CIP | Malaysia |
| Thailand | Ethylene-based | Sold | 815 | LC at sight | DAP | Malaysia |
| USA | Ethylene-based | Offer Given | 790 | LC at sight | CIF | Malaysia |
Description: *June shipment offers **July shipment offers
Tags: Asia Pacific,English,PVC,Quarterly,SEA
Published on July 7, 2020 12:14 PM (GMT+8)
Last Updated on September 24, 2020 5:01 PM (GMT+8)
