Significant Adjustment On PVC Prices Captured In Vietnam Despite The Traditional Low Season
- Local ethylene-based PVC prices showed a notable adjustment
- Demand deteriorated by several factors
- Outlook for PVC demand in Vietnam market clouded by bearish tone
Significant adjustment on ethylene-based PVC prices captured in the Vietnam market despite the traditional low season. Last week, one of the local ethylene-based PVC producers announced offers for July delivery at VND2,200,000-2,300,000/ton ($94-99/ton) higher. Similarly, another local producer also announced fresh offers this week with an increment of VND2,400,000/ton ($103/ton), all compared to the offers for June delivery. Market players also informed on receiving offers for July delivery from the local producers in the country with increment of between VND2,000,000-2,100,000/ton ($86-90/ton) during the same time comparison. SSESSMENTS.COM noted that the deals were mostly concluded at the initial level for regular volume. While for big procurement, the deals were concluded between VND100,000-200,000/ton ($4-9/ton) lower than the initial offer level, at VND19,100,000-19,800,000/ton ($820-850/ton) on cash, FD basis and excluding 10% VAT. Bid submitted at VND600,000/ton ($26/ton) lower than the initial offer level, at VND18,600,000/ton ($799/ton) with the same payment and shipment term was rejected by the producer. In the import market, no fresh offers were reported at the time of publication.
In terms of demand, the producer revealed that buyers were showing a stiff resistance towards the offers for July delivery which surfaced with a notable upward price adjustment. Added to that, buyers are not showing much interest also due to demand for the end products dampened by the rainy season and sufficient inventory on converters’ end since most of them procured in a big quantity in the last two months. However, SSESSMENTS.COM noted that some converters are still willing to procure materials in anticipation of higher ethylene-based PVC prices. On the production front, no supply issues were reported in the market.
Looking ahead, Vietnamese market players stated that local ethylene-based PVC prices would be stable to firm even though demand is slow. The high feedstock prices cited as the supporting factor for PVC prices to hover at the current level amidst the traditional low season. Demand-wise, in the upcoming weeks demand for ethylene-based PVC is expected to worsen, as stated to SSESSMENTS.COM.
