- Local and import offers moved in tandem
- Better demand captured for local cargoes
- Outlook is cloudy due to the rainy season
As SSESSMENTS.COM noted, there were no local PVC offers released in the Southeast Asia market in early June. Fresh offers then revealed in Thailand market on the week commencing June 8 with local PVC cargoes were available at THB25,500-26,000/ton ($817-833/ton) on cash, FD Thailand basis, and excluding 7% VAT. The Philippines market began to move in the second half of June with local producers offering cargoes at PHP48,000-49,000/ton ($967-988/ton) on 90 days credit term, FD basis and including 12% VAT, which was PHP8,000/ton ($161/ton) lower as compared to offers in the previous month. Correction then came on the week starting June 22, a Philippines producer announced offers for July delivery with an increase of PHP3,000/ton ($60/ton). Thai producers followed the lead to increase in July delivery offers by the final week of June with local producers’ offers going up by THB2,000/ton ($64/ton). For localized cargoes, offers for localized Chinese and South Korean ethylene-based PVC, as well as Chinese acetylene-based PVC, were available in Malaysia market at MYR3,700/ton ($862/ton) on 30 days credit terms and excluding 6% SST for July delivery.
In the import market, SSESSMENTS.COM noted there were hefty adjustments made by foreign PVC suppliers in June. From Taiwanese and Japanese producers, offers for July shipment to Southeast Asia surged between $90 and 100/ton respectively. Similarly, the leading Indonesian PVC producer also initiated notable increment on offers to Malaysia as much as $80-90/ton after enjoying good sales in the first half of June. All price changes were on the monthly comparison. Detailed information for Indonesia and Vietnam market is available in MonthlySSESSMENTS of the respective countries.
In general, demand for local materials was quite good in contrast with imports. Most import cargoes in the second half of June emerged with significant increases and pushed Southeast Asian buyers to the sidelines. SSESSMENTS.COM also was informed that buyers only procured on an as-needed basis due to weak demand for finished products. Whilst the rainy season started to kick-in in the region toward the end of June, recovery still detected in the Philippines and Thailand market as countries restarting their activities after the lockdown. As for Malaysia, the PVC market improved every week, especially for the compounding sector as most converters in this sector were running at 50-60% from normal capacity. On the supply side, no significant issue was reported.
For the outlook, Southeast Asian market players believe that PVC demand in the region will be slower once the rainy season intensifies. As for pricing, the room for August shipment offers to increase is limited as India as the main PVC importer will be in the low season due to the monsoon, as stated to SSESSMENTS.COM.
Transactions for import ethylene-based PVC offers between June 1 to June 5
| Origin | Transaction Type | Offers (USD/ton) | Payment Term | Delivery Term | Delivery Country |
|---|
| Indonesia | Offer Received | 690 | LC at sight | CIF | Malaysia |
| Indonesia | Purchased | 690 | LC at sight | CIF | Malaysia |
| South Korea | Offer Received | 690-705 | LC at sight | CIF | Malaysia |
| South Korea | Purchased | 690-705 | LC at sight | CIF | Malaysia |
| Thailand | Offer Received | 730 | TT | CIP | Malaysia |
Transactions for local ethylene-based PVC offers between June 8 to June 12 on FD basis, and excluding VAT in all terms
| Origin | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term | Delivery Country |
|---|
| Thailand | Offer Given | THB | 25,500-26,000 | 817-833 | Cash In Advance | Thailand |
| Thailand | Offer Received | THB | 26,000 | 833 | 60 Days Credit Term | Thailand |
Transactions for import ethylene-based PVC offers between June 8 to June 12 on LC at sight, CIF Main Port basis
| Origin | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Thailand | Offer Received | 765 | Malaysia |
Transaction for local ethylene-based PVC offers between June 15 to June 19 on FD basis (including 12% VAT in PHP term, all equivalent in USD excluding VAT)
| Origin | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term | Delivery Country |
|---|
| Philippines | Offer Given | PHP | 48,000-49,000 | 864-882 | 90 Days Credit Term | Philippines |
| Thailand | Offer Received | THB | 26,000 | 833 | 30 Days Credit Term | Thailand |
Transactions for import ethylene-based PVC offers between June 15 to June 19 on LC at sight
| Origin | Transaction Type | Offers (USD/ton) | Delivery Term | Delivery Country |
|---|
| China | Offer Received | 830 | CIF | Malaysia |
| Indonesia | Offer Received* | 780 | CIF | Malaysia |
| Indonesia | Sold | 785-795 | CIF | Malaysia |
| South Korea | Offer Received | 790 | CIF | Malaysia |
| Thailand | Buy Idea* | 850 | CIF | Malaysia |
| Thailand | Offer Received* | 865 | CIF | Malaysia |
| Thailand | Sold | 815 | DAP | Malaysia |
| Indonesia | Sold | 785-795 | CIF | Singapore |
| Taiwan | Offer Given | 820 | CIF | Southeast Asia |
| Taiwan | Sold | 790-820 | CIF | Southeast Asia |
| Japan | Offer Received* | 800 | CIF | Thailand |
Description: *July shipment offers
Transaction for local ethylene-based PVC offers between June 22 to June 26 on FD basis (including 12% VAT in PHP term, all equivalent in USD excluding VAT)
| Origin | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term | Delivery Country |
|---|
| Philippines* | Offer Given | PHP | 51,000-52,000 | 918-936 | 90 Days Credit Term | Philippines |
| Thailand | Offer Received | THB | 25,500 | 817 | 60 Days Credit Term | Thailand |
Description: *July shipment offers
Transactions for import ethylene-based PVC offers between June 22 to June 26 on LC at sight, CIF Main Port basis
| Origin | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Indonesia | Purchased* | 780 | Malaysia |
| Thailand | Offer Received* | 810 | Malaysia |
| China | Offer Given | 790-800 | Southeast Asia |
Description: *July shipment offers
Transaction for local ethylene-based PVC offers between June 29 to June 30 on FD basis (excluding VAT in all terms)
| Origin | Product | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term | Delivery Country |
|---|
| China | Acetylene-based | Offer Given | MYR | 3,700 | 862 | 30 Days Credit Term | Malaysia |
| China | Ethylene-based | Offer Given | MYR | 3,700 | 862 | 30 Days Credit Term | Malaysia |
| South Korea | Ethylene-based | Offer Given | MYR | 3,700 | 862 | 30 Days Credit Term | Malaysia |
| Philippines | Ethylene-based | Offer Given* | PHP | 51,000-52,000 | 918-936 | 90 Days Credit Term | Philippines |
| Thailand | Ethylene-based | Sell Idea | THB | 26,500 | 849 | 60 Days Credit Term | Thailand |
| Thailand | Ethylene-based | Offer Received | THB | 27,500 | 881 | 60 Days Credit Term | Thailand |
Description: *July shipment offers
Transactions for import PVC offers between June 29 to June 30 on LC at sight, CIF/CFR Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| China | Acetylene-based | Offer Received | 810 | Malaysia |
| Thailand | Ethylene-based | Buy Idea | 810 | Malaysia |
Tags: Asia Pacific,English,Monthly,PVC,SEA
Published on July 6, 2020 4:18 PM (GMT+8)
Last Updated on September 25, 2020 6:08 PM (GMT+8)
