- Local offers recorded on a downtrend during October
- TPC Vina resumed production at PVC plant on October 5
- Demand predicted to remain sluggish in the near term
According to the data collected by SSESSMENTS.COM’s team, the offers for local ethylene-based PVC were on a downtrend during October. October delivery offers for ethylene-based PVC from the local producers decreased between VND300,000-600,000/ton ($13-26/ton) compared to September delivery. Deals for local PVC cargoes during October concluded between VND20,000,000-21,200,000/ton ($857-909/ton) on cash, FD Vietnam basis and excluding 10% VAT, with the lowest level captured on the week commencing October 28.
In the import market, the November shipment offers for Japanese PVC cargoes decreased by $20/ton compared to last month’s level and the done deals were achieved at the initial offer level. From the leading Taiwanese PVC producer, November shipment offers to the Vietnam market surfaced with a reduction of $30/ton compared to October. A discount of $10/ton was applicable for 500 tons and above. On the week commencing October 21, November shipment offers from a Japanese PVC producer surfaced with a decrease of $30/ton compared to October. Moving to the following week, SSESSMENTS.COM was told that the November shipment offers for PVC cargoes of Indonesia origin also trimmed by $20/ton on a monthly comparison.
According to market sources report to SSESSMENTS.COM, the demand for PVC resin in Vietnam during October was sluggish. Sources added that some converters had sufficient inventory on hand while some others preferred to keep the procurement on hand to mouth basis due to the slow sales for finished products. Moreover, the use of HDPE pipe in the construction sector caused slow sales for PVC pipe. On the production sector, TPC Vina Plastic Chemical Corporation Limited (TPC Vina) conducted maintenance shutdown at the company’s PVC plant no.1 with a capacity of 80,000 tons/year from September 24 to October 5. There was no supply issue reported during October.
Pertaining to the outlook, the majority of Vietnamese market players predict that the demand for PVC will remain sluggish in the near term. While in terms of price, sources added to SSESSMENTS.COM that there is a possibility for PVC prices to decrease further.
Tags: Asia Pacific,English,EN PVC VIETNAM MSS,MonthlySSESSMENTS,Polyvinyl Chloride (PVC),Southeast Asia,Vietnam PVC prices,Vietnam PVC pricesNovember 22, 2019 5:34 PM