Southeast Asian Market Players Voiced Out Opinion On Price Adjustment Amid Recovery Processes On PVC Market
- Leading Taiwanese PVC producer announced July shipment with hefty adjustment
- No significant improvement recorded for PVC demand
- PVC market expected to gradually improve, yet significant price changes will be deemed unworkable
Southeast Asian market players voiced out their opinion to SSESSMENTS.COM on price adjustment amid recovery processes on the PVC market. In the domestic market, the offers for local ethylene-based PVC cargoes in Thailand were kept stable from last week, available at THB25,500-26,000/ton ($810-826/ton) on cash, FD Thailand basis, and excluding 7% VAT. While in the Philippines, there are no fresh offers announced by the local producers yet. From the import market, the leading Taiwanese PVC producer announced July shipment offers to the Southeast Asia market with a significant upward adjustment of $90/ton from June shipment, stand at $790/ton on LC at sight, CIF Southeast Asia Main Port basis. Detailed information for Vietnam and Indonesia market is available in WeeklySSESSMENTS of respective countries.
According to market sources report to SSESSMENTS.COM, there is no significant improvement recorded for PVC demand in Southeast Asia compared to last week. In Malaysia, demand remains slow as there is only a limited number of construction projects running. Although some construction projects in Kuching, Sarawak area have resumed, one of the foreign workers was tested positive for COVID-19 last week. As such, sources are unsure whether the project will continue as most of the workers in the construction sector are foreign workers. Meanwhile, in the Philippines, sources stated that lack of manpower remains the main issue for factories to increase production rate since limitation for public transportation is still in place. Further added, Philippines buyers are not in a position to replenish inventory as well. On the supply side, there are no issues reported in the region.
For the outlook, the majority of Southeast Asian market players predict that the PVC market will gradually improve as more construction projects are expected to resume again, especially in Malaysia, as the pipe sector accounts for around 60% of PVC consumption in the country. However, some sources opined to SSESSMENTS.COM that significant price increases will most likely be deemed unworkable as the market is still in the middle of recovery processes.
