Southeast Asian PVC Market Participants Hinted To Start The Businesses By Next Week
- Thai ethylene-based PVC producers maintain the offers firm
- Import offers reported scarce
- Producers and converters are planning to reopen businesses by next week
Based on the data collected by SSESSMENTS.COM, Southeast Asian PVC market players are planning to come back to their desks by next week. In terms of offers, there were no offers for ethylene-based PVC in the Philippines since local producers’ PVC plants are still off-line. In Thailand, two PVC producers in the country maintained the offers firm at THB24,500/ton ($761/ton) on 60 days credit term, FD Thailand basis and excluding 7% VAT. Buyers’ bids at THB22,000/ton ($683/ton) on the same payment and delivery term were rejected by the producers. In the import market, Malaysian market players stated that there were no fresh import offers for Thai ethylene-based PVC cargoes received this week.
There is no significant improvement in demand for PVC resins within the Southeast Asia market. Aside from the low sales for the end products, sufficient raw materials on converters’ end also dampened demand for PVC resins. In Thailand, only PVC cable and PVC bottles sold quite well in the market. On the production front, SSESSMENTS.COM was told that Philippines’ General Chemical & Resins Consortium Inc is planning to restart the company’s 20,000 tons/year PVC plant on May 18 if the government does not extend the lockdown. In Thailand, market talks have it that Vinythai Public Co Ltd, as well as Thai Plastic and Chemicals, are having limited supply to the domestic market as the producers shift their allocation to the export market. From the downstream market, a Malaysian pipe manufacturer will restart production at factories on May 12 to resolve the backlogs. While for materials delivery, it might start by next week after discussing with customers.
Looking ahead, most of the Southeast Asian market players stated that demand for PVC resins will need some time to recover after the government eased the lockdown. In terms of prices, market players foresee that local and import PVC offers in June will be stable as demand would remain weak due to Coronavirus issue. Besides, June is the traditional low season for the PVC end products in Southeast Asia, particularly in Thailand, as stated to SSESSMENTS.COM.
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