Local HDPE Pipe (PE 100) offers on cash, FD Philippines basis (including 12% VAT in PHP term and excluding VAT in USD term)
A Philippines pipe manufacturer informed SSESSMENTS.COM that the company will ramp up production as demand for end-products obtains support from construction projects in the country. Even though there are no major improvements in the market this week, demand for pipe products is actively flowing-in as supported by the ongoing construction projects. Due to this, the manufacturer planned to increase its operating rate to 20%, from previously only 10% of normal capacity. However, the plan is still under consideration as the company needs to make sure with their workers regarding the transportation issue in the Philippines. At the moment, the manufacturer has yet to make fresh procurement and is still using the remaining inventory to cover the current production needs. “We still have no plan to make procurement within this month and will only make one in July,” the manufacturer further added.
On the other side, the manufacturer has started to submit inquiries to a local producer for HDPE Pipe (PE 100) cargoes. In response, the producer is quoting prices between PHP54,000-55,000/ton ($1,081-1,101/ton) on cash, FD Philippines basis and including 12% VAT. No price comparison available since the manufacturer did not ask for their cargoes foregoing. For the next procurement, the manufacturer will likely to purchase some cargoes from the local producer as they believe that local producer’s offers will remain competitive compared to import. In the near term, the manufacturer opined to SSESSMENTS.COM that high prices would not be workable in the Philippines as the market is still in the state of slow recovery.
Tags: Asia Pacific,English,News,PE,Philippines,SEA
Published on June 9, 2020 4:46 PM (GMT+8)Last Updated on June 10, 2020 9:19 AM (GMT+8)
