Price Adjustment Recorded Amid Holiday Season In Southeast Asia PVC Market
- Adjustment captured on localized and import PVC offers in Malaysia
- PVC demand continues in a moderate state
- PVC price and demand trend depends on feedstock price and trading activity after holiday
On the week commencing July 27, SSESSMENTS.COM noted price adjustments in the Southeast Asia PVC market amid the holiday season. In Malaysia, following the international price trend, localized ethylene-based PVC cargoes of China and South Korea origin, as well as localized acetylene-based PVC of China origin have gone up by MYR100/ton ($23/ton) as compared to the offers for July delivery. In Thailand, as the market is on holiday due to the celebration of the 68th birthday of His Majesty King Maha Vajiralongkorn Phra Vajiraklaochaoyuhua, fresh local ethylene-based PVC prices are expected to surface on Wednesday afternoon, July 29. Market talks have it that local PVC offers for August delivery from local producers will be adjusted up by THB2,000/ton ($63/ton) compared to last week, in which, deemed unsuitable with the recent market condition. In the import market, import ethylene-based PVC of Indonesia origin to Malaysia increased by $35/ton on a monthly comparison, available at $815/ton on LC at sight, CIF Malaysia main port basis, with the deals captured at $5/ton lower than initial offer. Detailed information for Indonesia and Vietnam market is available in WeeklySSESSMENTS of the respective countries.
Demand-wise, buyers in Malaysia are buying on an as-needed basis. SSESSMENTS.COM noted that buyers were unwilling to stock up more volume due to a lot of uncertainties in the market. Speaking of end-products demand, demand for hose and pipe continues in a moderate state. Converters in Malaysia maintain the production rate between 70-90%. In the Philippines, most manufacturers are running at 50% from the maximum capacity as demand remains flat.
Looking ahead, Southeast Asian market players believe that improvement in demand for PVC resins will take place after Eid al-Adha holiday, if business continues normally after the holiday and not having another restriction episode. In terms of prices, PVC prices will solely rely upon the feedstock prices. If VCM maintains the high-level prices, there will be no room for a downward adjustment on PVC offers, SSESSMENTS.COM was told.
