Believed To Follow International Market Trend, July Delivery Offers From Indonesian PVC Producers Expected To Surface With Smaller Adjustments
- Local offers for July delivery has yet to surface in the market
- Standard Toyo Polymer (Statomer) to resume PVC plant
- Buyers expect July delivery offers to emerge with an increase of between $50-80/ton
Believed to follow the international market trend, July delivery offers from Indonesian PVC producers are expected to surface with smaller adjustments, sources told SSESSMENTS.COM. This week, local PVC producers in Indonesia have yet to announce fresh offers for July delivery. Similarly, local traders in the country have stopped offering materials as the leading Taiwanese PVC producer has announced offers for July shipment. For localized cargoes, deals for ethylene-based PVC of China origin captured at $920/ton on 60 days credit term, FD Indonesia basis and excluding 10% VAT. In the import market, deals for Thai ethylene-based PVC cargoes for July shipment captured at a high level, at $840/ton on LC at sight, CIF Indonesia main port basis.
Demand for PVC resins in Indonesia has yet to show significant improvement. Operating rate at most converters remains unchanged from last week, maintained at 50-60% from the maximum capacity. Demand for the end-products is still slow, except for PVC pipe since some infrastructure projects from private sectors are ongoing. On the supply front, there are no significant issues reported from the domestic market. On the production front, SSESSMENTS.COM noted that Standard Toyo Polymer (Statomer)’s 82,000 tons/year PVC plant is slated to come on-stream on June 16. Previously, the producer shut the plant on May 27 for maintenance purposes.
Looking ahead, Indonesian market players believe that local PVC producers in Indonesia would increase July delivery offers, in line with the international market trend. However, the increases are expected not to be as much as the increases made by the leading Taiwanese PVC producer. If local offers increased by $90-100/ton, buyers would show a stiff resistance since it is not affordable amidst the slow demand for the end-products. Hence, local offers for July delivery expected to surface with increases of between $50-80/ton from June delivery, as stated to SSESSMENTS.COM.
