Local ethylene-based PVC offers on cash, FD Indonesia basis, excluding 10% VAT
Import ethylene-based PVC offers on LC at sight, CIF China Main Port basis
The leading Indonesian PVC producer told SSESSMENTS.COM that the company is in discussions with Chinese customers with the intention to export their materials. According to the source, sell idea stands at $600-620/ton or in line with Chinese buyers’ expectation. The producer also ready to accept bids lower than the $30-60/ton figure than market prices in China. According to SSESSMENTS.COM pricing database, local ethylene-based PVC prices in the China market are now at an average of $660/ton in USD denomination and excluding 13% VAT.
The producer is also wary about offers from the leading Taiwanese PVC producer who can set offer under $620/ton, or at least at $150/ton lower from April shipment offers. SSESSMENTS.COM found that most acetylene-based PVC producers in China had stopped production due to production costs that were too high. Meanwhile, ethylene-based Chinese PVC producers are still running the plants but had predicament to export the product due to lockdowns occur in destination markets, such as Malaysia.
According to the producer, now the concentration is aimed at helping the sister company in Vietnam to cater to domestic demand as their production capacity could not fulfil the needs. Source also heard that many PVC producers in Southeast Asia had reduced their operating rates due to low demand in the market. In the local market, the producer reported to SSESSMENTS.COM on having zero deals. COVID-19 outbreak had affected the Indonesian market and might also affect the maintenance at two VCM plants, which was scheduled to shut from June until August.
The producer also shared with SSESSMENTS.COM that demand still existed in Pakistan with PVC cargoes sold at prices above $700/ton-level due to tax and freight costs. The producer does not involve itself in the Bangladesh market where competition is quite tight between Taiwan and US producers. Meanwhile, the producer could not sell to Australia and New Zealand due to lockdown.
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WeeklySSESSMENTS: China PVC Prices W/C April 13
Tags: Asia Pacific,China,English,ISC,Indonesia,News,PVC,SEA
Published on April 20, 2020 2:09 PM (GMT+8)Last Updated on April 21, 2020 12:50 PM (GMT+8)
