Vietnamese PVC Market Participants Worried On The Side Effect Of Hinted Import Price Adjustment
- Offers remain scarce as local producers and traders await for June shipment of Taiwanese cargoes
- Demand is hampered by several factors
- Vietnamese market participants stated a cloudy outlook
Vietnamese market players contacted by SSESSMENTS.COM’s team are worried about the aftermath if the leading Taiwanese PVC producer adjusted the offers for June shipment as hinted before. At the moment, there are no offers available for ethylene-based PVC cargoes in the Vietnam market as the local producers and traders in the country are waiting for the price announcement from the leading Taiwanese PVC producer. The Taiwanese PVC producer hinted to adjust up the offers for June shipment by $30/ton as compared to May shipment. Considering the VCM prices, Vietnamese market players deemed the upward price adjustment is reasonable and the amount of the increases is acceptable. As such, Vietnamese market players predict that local ethylene-based PVC prices will follow suit with increases of VND500,000/ton ($21/ton) from April delivery’s level.
Although market players are expecting an upward price adjustment, they are worried that it would severely affect the demand. At the moment, PVC demand remains slow as most converters have replenished their stocks last week. Besides, the rainy season is around the corner. As the weak demand due to the rainy season is on the edge, converters prefer to keep the lean inventory level. As such, some Vietnamese players are afraid that the upward price adjustment will hinder buyers from procuring materials. On the supply front, no significant issues reported to SSESSMENTS.COM.
Looking ahead, even though local and import ethylene-based PVC prices have a big room to increase, however, Vietnamese market players predict that it might not last for a long time due to the lack of supporting factors. Since global PVC demand has not back to normal yet, prices might go down after increasing, as stated to SSESSMENTS.COM.
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