- In March, most local and import PVC offers recorded on an uptrend, except for one producer
- Most converters cut their production rate by around 20-30%
- May shipment offers predicted to drop significantly up to $200/ton
On the week commencing March 2, SSESSMENTS.COM noted that some converters received March delivery offers from the leading Indonesian PVC producer with an upward adjustment of $10/ton compared to February delivery offers. While some others received the offers at a stable level from the same period. Moving to the week commencing March 9, some deals for local cargoes were completed at the same level as the initial offers at $910-920/ton on cash, FD Indonesia basis and excluding 10% VAT. In the following week, one of the Indonesian producers reported trimming March delivery offers by $60/ton compared to February considering demand conditions at that time.
In the import market, SSESSMENTS.COM noted that April shipment offers from the leading Taiwanese PVC producer surfaced with a notable decrease of $50/ton as compared to March. Likewise, April shipment offers from a Thai PVC producer have emerged with a decrement of $40/ton compared to the same period. However, some traders lamented that offers for Thai cargoes were still deemed too high despite the adjustment. Although offers in the import market were significantly decreased, Indonesian buyers were left with higher cost as Rupiah depreciated significantly against the US Dollar. Therefore, import offers were deemed unattractive at the time.
Based on the information gathered by SSESSMENTS.COM, demand for PVC in the Indonesia market was sluggish owing to the Coronavirus outbreak coupled with slow sales for end-products. Besides, the plunge in crude oil prices and weakening Rupiah towards the US Dollar have also hampered buying appetite. Triggered by the sluggish demand, some manufacturers decided to reduce the operating rate, around 20-30% lower than the normal output to offset the impact. On the supply front, the availability of PVC was sufficient and no production issues were reported during the month.
Looking ahead, the leading Indonesian PVC producer predicts that May shipment offers will drop significantly up to $200/ton from the current levels. Likewise, other market players also believe that PVC prices will decrease further following the weak demand. On the demand front, some players opined to SSESSMENTS.COM that sales for PVC resins will remain sluggish amid the Coronavirus issue.
Range of local ethylene-based PVC offers between March 2 to March 6 on FD Indonesia basis, excluding 10% VAT
| Origin | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| Indonesia | Offer Received | 1,010 | 45 Days Credit Term |
| Indonesia | Offer Received | 930 | Cash In Advance |
| Indonesia | Offer Received | 970-990 | 30 Days Credit Term |
| Indonesia | Purchased | 1,010 | Net 45 days |
| Indonesia | Purchased | 980 | Net 30 days |
Range of import PVC offers between March 2 to March 6 on LC 60 days, CIF Indonesia Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| China | Acetylene-based | Purchased | 825 |
| Thailand | Ethylene-based | Purchased | 925 |
Range of local/localized ethylene-based PVC offers between March 9 to March 13 on FD Indonesia basis, excluding 10% VAT
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment term |
|---|
| China | Acetylene-based | Offer Received | 960 | Cash In Advance |
| China | Acetylene-based | Offer Given | 950 | 60 Days Credit Term |
| Indonesia | Ethylene-based | Offer Received | 910-920 | Cash In Advance |
| Indonesia | Ethylene-based | Offer Received | 950-970 | 30 Days Credit Term |
| Indonesia | Ethylene-based | Purchased | 910-920 | Cash In Advance |
| Indonesia | Ethylene-based | Purchased | 950-990 | 30 Days Credit Term |
| Indonesia | Ethylene-based | Sold | 980 | Cash In Advance |
| Thailand | Ethylene-based | Offer Given | 990 | 60 Days Credit Term |
| Thailand | Ethylene-based | Sold | 990 | 60 Days Credit Term |
Range of import acetylene-based PVC offers between March 9 to March 13 on LC at sight, CIF Indonesia Main Port basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| China | Offer Received | 860 |
Range of local ethylene-based PVC offers between March 16 to March 20 on cash/credit term, FD Indonesia basis and excluding 10% VAT
| Origin | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| Indonesia | Offer Received | 890-920 | Cash In Advance |
| Indonesia | Purchased | 900-910 | Cash In Advance |
| Indonesia | Purchased | 950-960 | 30 Days Credit Term |
Range of import ethylene-based PVC offers between March 16 to March 20 on LC 60 days, CIF Indonesia Main Port basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| Thailand | Offer Received | 895 |
Range of local ethylene-based PVC offers between March 23 to March 27 on cash, FD Indonesia basis and excluding 10% VAT
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| Indonesia | Offer Given | 850-879 |
| Indonesia | Purchased | 910-920 |
| Indonesia | Sold | 930-960 |
Range of import PVC offers between March 23 to March 27 on LC at sight, CIF Indonesia main port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| China | Acetylene-based | Offer Received | 830 |
| Taiwan | Ethylene-based | Offer Received | 830 |
| Thailand | Ethylene-based | Bid Given | 890 |
| USA | Ethylene-based | Offer Received | 880 |
Range of local/localized ethylene-based PVC offers between March 30 to March 31 on cash, FD Indonesia basis and excluding 10% VAT
| Origin | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term |
|---|
| Indonesia | Offer Given | IDR | 13,000,000-13,500,000 | 795-825 | Cash In Advance |
| Thailand | Offer Received | USD | 870-880 | - | 30 Days Credit Term |
Tags: Asia Pacific,English,Indonesia,Monthly,PVC,SEA
Published on April 2, 2020 5:51 PM (GMT+8)
Last Updated on April 6, 2020 1:59 PM (GMT+8)
