Local PVC Price Movements In Vietnam Polar Opposite Of Demand Condition
- A local producer adjusted August delivery offers following international price trend
- PVC demand reportedly dull
- Demand predicted to remain flat
Market sources reported to SSESSMENTS.COM that local PVC price movements in Vietnam polar opposite of demand condition. In the domestic market, August delivery offers from a local producer surfaced with an upward adjustment of VND500,000/ton ($22/ton) compared to July delivery’s level following the international trend. However, most buyers showed cold response due to the demand condition, although a converter was still willing to purchase 1,000 tons of ethylene-based PVC cargoes from the producer at the initial offer level. From the traders’ end, offers for local ethylene-based PVC cargoes increased by VND300,000/ton ($13/ton) from last week. From the import market, offers for Indonesian PVC cargoes are available at $800/ton, no price comparison available. While for Japanese origin, offers captured at $820/ton with some deals concluded at the initial offer level. All import offers on LC at sight, CIF Vietnam Main Port basis.
According to market sources reported to SSESSMENTS.COM, PVC demand in Vietnam is dull amid the traditional low season. Moreover, most buyers reported having sufficient inventory on hand while the demand for finished products remains slow. On the other hand, some buyers decided to reduce the buying quantity. Market sources stated that some converters reduced the buying quantity by 50% from the normal volume, in line with the reduced operating rate at their factories. On the supply side, there was no significant issue reported.
Looking ahead, market sources stated to SSESSMENTS.COM that the near-term outlook for PVC market in Vietnam remains pessimistic since demand predicted to remain flat due to the rainy season. However, sources predict that the possibility for import offers to decrease significantly is limited considering the upcoming maintenance shutdown at the leading Taiwanese PVC producer’s plants.
