Despite Similar State Of Demand, Southeast Asian Market Players Expressed Different Outlook For PVC Prices
- June shipment offers from leading Taiwanese PVC producer surfaced with adjustment
- Demand generally remains sluggish
- Most market players predicted PVC market to remain slow
Despite a similar state of demand, Southeast Asian market players contacted by SSESSMENTS.COM expressed a different outlook for PVC prices. For the week commencing May 18, the local offer for ethylene-based PVC in Thailand recorded at THB24,500 ($764/ton) on 30 days credit term, FD Thailand basis, and excluding 7% VAT with some deals concluded at the initial offer level. While in the Philippines, there is no fresh offer available for this week as buyers have not started to submit inquiries. Moreover, PVC plant of one of the local producers remains shut as of May 19. From the import market, June shipment offers from the leading Taiwanese PVC producer surfaced with an upward adjustment of $40/ton compared to May shipment, standing at $700/ton on LC at sight, CIF Southeast Asia Main Port basis. Detailed information for Indonesia and Vietnam market is available in the WeeklySSESSMENTS of respective countries.
According to market sources reported to SSESSMENTS.COM, PVC demand in Southeast Asia is generally weak despite the slight improvement observed. As informed, PVC demand in Malaysia and Thailand is slightly improving following the improvement in sales for finished products after the lockdown relaxation. While in the Philippines, the main problem for the business to resume activity is the lack of manpower due to public transportation issues. Sources added that some workers in the Philippines have to pay for PHP700 ($14) for a one-way trip when normally it only costs PHP10 ($0.2) per trip with public transportation. Hence, some converters stated that the companies are unable to meet customers’ demand although there are some orders received. On the supply side, there are no issues reported in the region.
Pertaining to the outlook, the majority of Southeast Asian market players opined that the market would remain sluggish in the near term as affected by some factors, such as transportation issues and slow sales for finished products coupled with high raw materials inventory on converters’ end. Thus, price increment will most likely be considered unworkable, SSESSMENTS.COM was told. However, some sources expressed the possibility for PVC prices in the region to move higher following the international market trend and slight demand improvement.
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