Vietnamese Converters Hesitate To Make Large Scale Procurement On Cloudy PVC Market Outlook And Unpredictable International Trend
- No fresh import offers received yet in Vietnam
- Some converters reduce buying quantity or skip procurement of import PVC cargoes
- Finished product demand expected to slow down in August
As informed to SSESSMENTS.COM, the majority of Vietnamese converters hesitate to make procurement in big volume due to cloudy PVC market outlook and unpredictable international trend. On the week commencing June 1, a local producer in Vietnam adjusted up June delivery offers for ethylene-based PVC cargoes by VND1,000,000/ton ($43/ton) compared to May delivery. Done deals for these cargoes concluded at the same level to the initial offers between VND16,800,000-17,000,000/ton ($721-751/ton) on 15 days credit term, FD Vietnam basis, and excluding 10% VAT. While from the trader’s end, local PVC cargoes are available between VND17,200,000-17,600,000/ton ($738-755/ton) on cash, FD Ho Chi Minh basis, and excluding 10% VAT. In the import market, at the time of publication, there were no import offers captured yet as most deals for June shipment have been wrapped up and market players are waiting for fresh offers to be announced after the 10th of the month.
The overall PVC demand in Vietnam is considered healthy as June is still a high season for PVC. Sales at a local producer are satisfactory as most buyers prefer to purchase local materials. Likewise, finished product demand at local converters’ end remains stable from last week and is not affected by the rainy season yet. Saying so, as buyers are unsure of the outlook and price trend for July shipment offers, some converters have decided to skip procurement, particularly from the import market or reduced purchase quantity. One of the local traders also stated that sales at their end are slowing down as most buyers have stocked up some volume in the previous weeks. On the supply front, no significant issue reported to SSESSMENTS.COM.
Looking ahead, market players express to SSESSMENTS.COM a cloudy outlook for the PVC market in the days to come in line with the unpredictable international market trends. However, following the traditional patterns, finished product demand will only start to slow down in August and last until November. In terms of prices, some believe that due to a limited supply, import PVC prices may increase by $20-30/ton in the near term.
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