Vietnamese PVC Producer Applied Remarkable Adjustments On July Delivery Offers
- Import price trend started to shift
- The Vietnam PVC market is entering the traditional slowest time of the year
- Some converters are contemplating to reduce operating rate
In the week commencing June 22, SSESSMENTS.COM was informed that a Vietnamese PVC producer applied remarkable adjustments on July delivery offers. The producer’s offers increased between VND2,200,000-2,300,000/ton ($84-88/ton) compared to June delivery due to high VCM cost and following the international trend. However, market players receiving offers from the producer reported that the increments were between VND2,000,000-2,800,000/ton ($76-107/ton) compared to the same period. Another Vietnamese PVC producer also indicated that July delivery offers would be announced this week. Market talks have it that the producer has adjusted up offers between VND1,500,000-1,800,000/ton ($57-69/ton), no confirmation from the producer yet. From the import market, ethylene-based PVC cargoes of Taiwan origin were available at $740/ton on LC at sight, CIF Vietnam main port basis. Market players commented that import offers in the country started to show signs of a downtrend as buyers resist high offer levels.
Demand-wise, the PVC market in Vietnam is slow as affected by the rainy season in the country. Some converters are already running at reduced rates and some are considering to lower the production rate further nearing July, which is the traditional slowest time of the year for the PVC market in Vietnam. Some buyers also plan to reduce PVC purchasing volume due to the state of end-product demand and high offers. No significant supply issues were reported to SSESSMENTS.COM. According to rumour, TPC Vina Plastic and Chemical Corporation Limited will conduct maintenance shutdown at the company’s PVC plant for two weeks in July. However, there is no confirmation and further details from the producer yet.
Looking ahead, the majority of market players believe that import and local PVC prices in Vietnam should be stable. The players opined that chances for further increases are slim and it is unlikely that offers could bounce back to $900/ton-level. Some others expected that August shipment offers from PVC producers in Southeast Asia to decrease between $20-30/ton. SSESSMENTS.COM was also told that demand for PVC in the country is expected to decline further.
