Southeast Asian Market Players Predict Limited Room For August Shipment Adjustment On The Back Of Weather Factor
- Local PVC prices remain unchanged
- No import PVC offers available in the market
- Southeast Asian market players anticipated small amount of adjustment for August shipment
Southeast Asian market players predict limited room for August shipment adjustment on the back of weather factor. SSESSMENTS.COM noted that within the week commencing July 6, Southeast Asian PVC market showed limited changes. Ethylene-based PVC prices in the Philippines from producer’s end remain stable over the week, available between PHP51,000-52,000/ton ($1,032-1,052/ton) on 90 days credit term, FD basis and including 12% VAT. In Malaysia, there are no fresh offers at the moment as sellers are waiting for the leading Taiwanese PVC producer to announce the offers for August shipment in order to gauge the market movement. In Thailand, local ethylene-based PVC prices captured unchanged at THB27,500/ton-level ($884/ton) with the deals achieved at the initial offer level on 30 days credit term, FD basis and excluding 7% VAT. In the import market, there are no fresh offers captured in the market at the moment. Detailed information for Indonesia and Vietnam market is available in WeeklySSESSMENTS of the respective countries.
Demand-wise, an ethylene-based PVC producer in the Philippines unveiled that demand is still ongoing as the monsoon season has yet to affect buying sentiment. Although some parts of the country have started to experience downpour, the intensity is still low. While in Malaysia and Thailand certain products showed a healthy demand. In Malaysia, demand from medical-sector remains healthy, while demand from the construction sector remains slow on the back of labour shortage, financial hiccups, and the hassle to follow the strict standard operating procedures (SOP) under the new normal guidelines. While in Thailand, demand for PVC calendering and sheet from the export market has started to improve. On the production front, Southeast Asian market players commented that the scheduled maintenance shutdown at Thai SCG’s 530,000 tons/year PVC plant in July for a week would not cause any supply disruption as it is only for a short period of time, as stated to SSESSMENTS.COM.
Looking ahead, market participants expect the leading Taiwanese PVC producer to roll-over the offers for August shipment or make an upward price adjustment of maximum $30/ton as compared to July shipment. Considering the firm feedstock prices, upward price correction is inevitable. However, as some parts of the region will be drench by the monsoon season, buyers will surely show stiff resistance towards the higher priced cargoes, SSESSMENTS.COM was told.
