Some Vietnamese PVC Buyers Eagerly Secure Materials In Anticipation Of Further Price Adjustment
- Local producers have sold out June delivery allocations
- Local traders in the country found momentum to maximize profit margin
- Vietnamese market players foresee upward price adjustment from local PVC producers
Some Vietnamese PVC buyers are eagerly trying to secure materials in anticipation of further price adjustment. Based on the data collected by SSESSMENTS.COM, local ethylene-based PVC producers in Vietnam have sold out all of the allocations for June delivery in the last week or two weeks ago. The deals were concluded at the initial offer level, between VND17,500,000-17,600,000/ton ($751-756/ton) on cash, FD Vietnam basis and excluding 10% VAT. Found momentum to maximize the profit margin, currently offers from traders’ end are higher between VND600,000-1,000,000/ton ($26-43/ton) as compared to the producer’s offers two weeks ago. In the import market, US ethylene-based PVC cargoes for July shipment surfaced with an increase of $80/ton as compared to offers for June shipment.
Demand for PVC resins and end-products reported ongoing. The rainy season has not hampered demand for PVC yet. However, some buyers with sufficient inventory from purchases when prices were low showed a stiff resistance towards the high-end level of the price range. On the other hand, some others that have not replenished their inventory are trying to secure materials before further price increases. On the supply front, although local producers in the country have no allocation at the moment, the materials are available on the traders’ end, SSESSMENTS.COM was told.
Looking ahead, Vietnamese market players opined that offers for July shipment from the leading Taiwanese PVC producer will surface with increases of $100/ton on the back of the uptrend in China and India market. As such, local producers in the country will also adjust up July delivery offers following the international market trend. However, the amount of the upward price adjustment would not be as high as the adjustment made by the leading Taiwanese PVC producer, since in July-August, the rainy season will hamper PVC demand in Vietnam, as stated to SSESSMENTS.COM.
