Converters And Manufacturers Plan To Shut Production, Current PVC Demand Condition Predicted To Persist
- Limited activities recorded in Indonesia PVC market
- Most converters and manufacturers plan to shut production starting from next week
- PVC market is predicted to remain muted in the near term
As told to SSESSMENTS.COM’s team, most converters and manufacturers plan to shut production approaching Eid Al-Fitr due to the slow demand. On the week commencing May 11, local ethylene-based PVC offers remained stable from last week and stood between $700-750/ton depending on the payment terms. However, limited transactions recorded this week as most buyers decided to halt procurements considering the current demand condition. While for localized Chinese acetylene-based PVC, no new offers captured yet. Likewise, there were no fresh offers from the import market so far.
Overall PVC demand in Indonesia remains subdued over the week. Some buyers prefer to purchase PVC cargoes on a need basis only. While the rest take a wait-and-see stance due to the slow demand for finished products. Even though the government has banned the Eid Al-Fitr celebration and moved collective leave to the end of the year, most converters and manufacturers still proceed with a plan to shut production starting from the end of next week until the beginning of June citing no customers’ orders to fulfil during the period. However, as stated by another converter, some packaging manufacturers still submit orders for May production and delivery before Eid Al-Fitr. On the supply side, no significant issue reported to SSESSMENTS.COM.
Indonesian market players believe that even if the government ease lockdown in June, the PVC market will need time to recover, as such, the market is expected to remain muted in the near term, as stated to SSESSMENTS.COM.
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