Market sources in Asia informed SSESSMENTS.COM that the latest offers for Japanese PVC cargoes surfaced with dramatic changes. As of April 20, May shipment offers from a Japanese PVC producer to China emerged with a reduction of $160/ton compared to April shipment. As per usual, the producer is only offering to re-exporters in China. For the Southeast Asia market, the producer initiated a bigger adjustment to lure buyers, by $190/ton lower compared to the same period. Meanwhile, the producer decided to skip offers for May shipment to India due to Coronavirus lockdown. May allocation from one of the Japanese producers for both China and Southeast Asia are available between 10,000-15,000 tons; which is lower than the normal monthly quantity due to the maintenance shutdown at the producer’s PVC plant.
In India, some market players stated that most overseas PVC suppliers are skipping May shipment offers to the country as no buyers are willing to make procurement at the moment. Despite Japanese producers stated earlier on their plans to skip offers for May shipment to India, however, some manufacturers reported still receiving offers for PVC cargoes from Japan at $650/ton on LC at sight, CIF India Main Ports basis. According to SSESSMENTS.COM’s pricing database, the current offers decreased more than $200/ton on a monthly comparison, between $250-260/ton. Based on market participants’ commentary, such a level is quite low as it is equivalent to $590/ton for 10% dutiable cargoes. Despite being considered as low, no deals concluded so far. Due to the current situation in India, market talks have it that the leading Taiwanese PVC producer cancelled the April shipment contract with Indian customers owing to their inability to pay the previous orders, citing that most customers are facing hardship remitting the payment amid the lockdown. At the time of publication, the validity of this statement cannot be confirmed yet directly by the Taiwanese producer. Unlike the Taiwanese producer, the Japanese producer did not accept order cancellations from their customers.
Whereas within the Southeast Asia market, a converter purchased some volume of Japanese PVC cargoes at $640/ton on LC at sight, CIF Vietnam Main Ports basis. On a monthly comparison, the deal nosedived at almost $200/ton, SSESSMENTS.COM noted. At the same time, another converter in the region also received offers for Japanese PVC cargoes at $640/ton on the same payment and delivery term. The converter has already submitted bids at $20/ton lower than the initial offer level, but no response from the seller yet. Additionally, some converters decided not to take Japanese PVC cargoes at $630/ton on LC 90 days, CIF Vietnam Main Port basis.
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Tags: Asia Pacific,English,Japan,NEA,News,PVC
Published on April 22, 2020 3:23 PM (GMT+8)
