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MonthlySSESSMENTS: April Vietnam PVC Prices

Author: SSESSMENTS

  • Vietnam relaxed its lockdown restrictions, except in cities and provinces with high risks
  • Demand remained on a bearish tone
  • Outlook is pessimistic as battle against Coronavirus persists

SSESSMENTS.COM’s pricing database showed that Vietnam PVC market has been sent into a tailspin as coronavirus continues to sweep the globe, bringing the economy to a crawl. On the week commencing April 6, a local producer applied a price reduction of VND200,000/ton ($8.5/ton) on ethylene-based PVC cargoes compared to last week as the spread of the deadly virus has sent demand for raw materials spiralling downward. From the import market, as crude oil prices remain stuck at low level, import ethylene-based PVC offers of South Korea origin have broken below $700/ton-level, available at $695/ton on LC at sight, CIF Vietnam Main Port basis. In the following week, no fresh offers available for the local market as some producers have sold out April allocation or closed offers in the week ended April 10, while import offers have mostly stayed below $700/ton-level.

Moving to the third week of April, the leading Taiwanese PVC producer announced May shipment offers to the Vietnam market. As compared to April shipment, the producer applied a hefty price reduction of $160/ton on ethylene-based PVC cargoes, with a discount of $10/ton is applicable for purchase of 500 tons and above. In the final week, a local producer has started offering cargoes for May delivery at between $180-200/ton lower than the offer level available for April delivery offers in US Dollar denomination. The offers ranged from VND16,000,000-16,400,000/ton ($681-698/ton) on cash, FD Vietnam basis and excluding 10% VAT.

Vietnam has been under countrywide partial lockdown since April 1, forbidding all non-essential travel except for work, health or emergency reasons, shutting its borders to travellers and halting non-essential economic activities. The government also set up medical checkpoints and screenings, which constricted movement of goods and workers. During a month-long nationwide lockdown, most buyers adopted a cautious stance on the back of market uncertainties amid a challenging macroeconomic environment over the pandemic crisis. Moreover, the downturn in oil prices has put major pressure on PVC prices. On April 20, US crude oil futures collapsed below US$0 per barrel for the first time in history, amid a coronavirus-induced supply glut.

Despite the ongoing lockdown, no significant supply issues were reported during the month. On April 15, Vietnam extended its lockdown for another week in cities and provinces with high risks, while lifting restrictions in other places. Hanoi, Ho Chi Minh and Da Nang, and provinces of Lao Cai, Quang Ninh, Bac Ninh, Ninh Binh, Quang Nam, Binh Thuan, Khanh Hoa, Tay Ninh and Ha Tinh will continue to be put under lockdown. On plant news, AGC Chemicals Vietnam has brought on stream its PVC plant on April 22 following a maintenance shutdown. Located in Ba Ria - Vung Tau Province, Vietnam, the plant with a capacity of 150,000 tons/year was initially expected to resume production on April 21.

Considering the downturn in the global market, Vietnamese market players foresee that the possibility of both local and import PVC prices to decrease further in the near term remain high. Despite the low case numbers, domestic demand is projected to decline further following the international market trend as most Southeast Asian countries are still fighting their respective battles against Coronavirus outbreak with differing levels of intensity. 

Click below to view related stories and content on Vietnam PVC:

WeeklySSESSMENTS: Vietnam PVC Prices W/C April 6

WeeklySSESSMENTS: Vietnam PVC Prices W/C April 13

WeeklySSESSMENTS: Vietnam PVC Prices W/C April 20

WeeklySSESSMENTS: Vietnam PVC Prices W/C April 27

Range of local ethylene-based PVC offers between April 1 to April 3 on cash, FD basis (excluding 10% VAT in all terms)

OriginTransaction TypeOffers (VND/ton)Equivalent in USD/tonDelivery Location
VietnamSold19,900,000-20,600,000847-877Ho Chi Minh
VietnamSold20,900,000-21,000,000889-894Haiphong

Range of import ethylene-based PVC offers between April 1 to April 3 on LC at sight, CIF Vietnam Main Port basis

OriginTransaction TypeOffers (USD/ton)
TaiwanOffer Received750
TaiwanPurchased750
USAOffer Given760
USABid Received700

Range of local ethylene-based PVC offers between April 6 to April 10 on cash, FD Vietnam basis (excluding 10% VAT in all terms)

OriginTransaction TypeOffers (VND/ton)Equivalent in USD/ton
VietnamOffer given20,800,000885

Range of import ethylene-based PVC offers between April 6 to April 10 on LC at sight, CIF Vietnam Main Port basis

OriginTransaction TypeOffers (USD/ton)
IndiaBid Given600
JapanBuy Idea650
JapanOffer Received720-740*
South KoreaOffer Received695
South KoreaPurchased700
USABid Given600
USAOffer Given655
USAOffer Received650
Description: *Offers for End-April shipment to selected customers

Range of import ethylene-based PVC offers between April 13 to April 17 on LC at sight, CIF Vietnam Main Port basis

OriginTransaction TypeOffers (USD/ton)
South KoreaOffer Received650*-660
USAOffer Received670**
USAPurchased630**
USAOffer Given660
USASold635
Description: *Offers for April shipment **Offers for May shipment

Range of import ethylene-based PVC offers between April 20 to April 24 on LC at sight, CIF Vietnam Main Port basis

OriginTransaction TypeOffers (USD/ton)
JapanOffer Received630-640
JapanPurchased630-640
JapanBid Given620
TaiwanOffer Given630-640
TaiwanOffer Received640-660
ThailandPurchased630
USAOffer Given630
USAOffer Received620-625
USAPurchased600

Range of local ethylene-based PVC offers between April 27 to April 30 on cash, FD basis (excluding 10% VAT in all terms)

OriginTransaction TypeOffers (VND/ton)Equivalent in USD/tonDelivery Location
VietnamBuy Idea15,500,000660Haiphong
VietnamBid Given16,500,000702Ho Chi Minh
VietnamOffer Received16,500,000-17,000,000702-723Ho Chi Minh
VietnamOffer Given*16,000,000-16,400,000681-698Vietnam
VietnamPurchased15,800,000672Ho Chi Minh
Description: *Offers for May delivery

Range of import ethylene-based PVC offers between April 27 to April 30 on LC at sight, CIF Vietnam Main Port basis

OriginTransaction TypeOffers (USD/ton)
JapanPurchased610
TaiwanOffer Received610
ThailandOffer Received615
ThailandBid Given600
USAOffer Given630
USABid Received580

Tags: Asia Pacific,English,Monthly,PVC,SEA,Vietnam

Published on May 11, 2020 1:00 PM (GMT+8)
Last Updated on June 15, 2020 1:09 PM (GMT+8)