Indonesia PVC Market Expected To Be On Different Direction From International Trend
- June delivery offers surfaced with adjustment
- Market activity remains limited on post-Eid holiday and effect of COVID-19 pandemic intensifies
- PVC market predicted to remain bearish in the near term
Market players predict that the Indonesia PVC market will be unable to follow the movement in the international market, SSESSMENTS.COM was told. In the domestic market, June delivery offers for ethylene-based PVC cargoes are available at $780/ton on 30 days credit term, FD Indonesia basis, and excluding 10% VAT. Compared to May delivery’s level, the offers increased by $40/ton. While other sources revealed that the company have not received the offers yet for June delivery.
As reported to SSESSMENTS.COM, PVC demand in Indonesia is sluggish as most businesses have just resumed this week after the Eid Al-Fitr holiday. Some converters stated that their company has not restarted the production yet and will monitor customers’ order for now before deciding on procurement and resumption of factory activities. If there are some incoming orders which indicate demand improvement, converters will purchase raw materials according to production needs. On the supply side, there are no issues reported in the country.
Looking ahead, market sources expressed to SSESSMENTS.COM that the PVC market movement in the country will remain bearish in the near term as most players adopt the wait-and-see stance. Other sources also predict that the PVC market in Indonesia would not be able to follow the current uptrend in the international market as most buyers are unwilling to accept higher prices due to the slow demand.
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