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QuarterlySSESSMENTS: Q1 2020 Indonesia PVC Prices

Author: SSESSMENTS

  • Local and import PVC prices plunged in March due to weak demand
  • Q1 2020 mentioned as an off-season for the PVC market in Indonesia
  • There are chances for a further decrease in prices following the slow demand

Throughout Q1 2020, the price trend for local offers in Indonesia's PVC market were mostly on an upswing but started to plunge approaching the end of the quarter. For January deliveries, the offers for ethylene-based PVC from several producers surfaced with an increase of $10/ton. Meanwhile, on February 3, the leading Indonesian PVC producer has announced February delivery offers and applied an increase of $20/ton. Follow suit, another local PVC producer also applied upward adjustment for February delivery offers by $20/ton. At the end of the Q1 2020, some local converters received March delivery offers from the leading Indonesian PVC producer with an upward adjustment of $10/ton. Contrastingly, another PVC producer in the country lowered March delivery offers by $60/ton considering demand conditions at that time. All price changes were on a monthly interval, SSESSMENTS.COM noted. 

Alike with the domestic market, import PVC offers in Indonesia also showed an uptrend in the first two months, yet, the prices were in free fall in the final month of the quarter. As SSESSMENTS.COM noted, January shipment offers from the leading Taiwanese PVC producer increased by $10/ton. For February shipment, the offers from the leading Taiwanese PVC producer emerged in the market with an upsurge of $20/ton. At the same time, a Thai PVC producer also initiated a price increment of $40/ton. Moving to the following month, the leading Taiwanese PVC producer raised their offers again by $10/ton for March shipment. Meanwhile, March shipment offers from a Thai PVC producer were hiked by $30/ton on the back of limited allocation stemming from water supply issues at its PVC plant. In March, considering the weak demand, the leading Taiwanese PVC producer reported trimming their April shipment offers by $50/ton. Similarly, April shipment offers from a Thai PVC producer have emerged with a decrement of $40/ton. All offers were on a monthly comparison. During March, Indonesian buyers were uninterested in taking import cargoes due to Rupiah depreciation against the greenback. 

Overall, buying sentiment was weak as traditionally, Q1 is an off-season for the PVC market in the country. At the beginning of the month, some converters were procuring on an as-needed basis, while some others already have sufficient supply. At that time, sales for end-products were mostly dampened by the rainy season and Lunar New Year holiday, except for PVC raincoats. In February, the impact of the Coronavirus outbreak started to kick in and kept buyers in cautious mode. Besides, limited government projects also eroded buying sentiment. In the following month, buying sentiment was further deteriorated by the intensified Coronavirus spreads, plunge in crude oil prices and depreciation of Indonesian Rupiah against the US Dollar. Since the sales for end-product were sluggish during Q1 2020, some manufacturers decided to reduce the operating rate to offset the impact, SSESSMENTS.COM was told.

On the supply front, the overall availability of PVC was mostly sufficient during the quarter. However, in February, Indonesia’s Sulfindo reportedly had a tight supply on their ethylene-based PVC K-57 grade. On the plant news, Indonesia’s Asahimas Chemical (ASC) shut its 150,000 tons/year VCM line no.1 for maintenance purposes from February to mid-March. As scheduled, the producer’s VCM lines resumed operation by mid March and on March 11, the producer source commented that all VCM lines were already running normally. SSESSMENTS.COM was also informed that Standard Toyo Polymer plans to shut its 82,000 tons/year PVC plant after Eid Al-Fitr for turnaround maintenance. At time of publication, the exact maintenance schedule is not ascertained yet. 

Looking forward into Q2 2020, Indonesian market players contacted by SSESSMENTS.COM believe that the market for PVC, in general, will remain sluggish amid the Coronavirus issues. As such, PVC prices are expected to decrease further.

Range of local/localized ethylene-based PVC transactions in January, FD Indonesia basis and excluding 10% VAT in all terms

OriginTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment Term
IndonesiaBuy IdeaUSD900-910-Cash In Advance
IndonesiaBuy IdeaUSD940-30 Days Credit Term
IndonesiaBuy IdeaUSD990-45 Days Credit Term
IndonesiaOffer GivenUSD900-950-Cash In Advance
IndonesiaOffer GivenUSD880-940-30 Days Credit Term
IndonesiaOffer ReceivedUSD870-930-Cash In Advance
IndonesiaOffer ReceivedUSD920-950-30 Days Credit Term
IndonesiaOffer ReceivedUSD990-45 Days Credit Term
IndonesiaPurchasedIDR13,700,000820Cash In Advance
IndonesiaPurchasedUSD870-905-Cash In Advance
IndonesiaPurchasedUSD930-960-30 Days Credit Term
IndonesiaPurchasedUSD990-45 Days Credit Term
IndonesiaSell IdeaUSD950-960-30 Days Credit Term
IndonesiaSoldUSD890-950-Cash In Advance
ThailandSoldUSD965-990-60 Days Credit Term

Range of import PVC transactions in January, CIF Indonesia Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Payment Term
ChinaAcetylene-basedBuy Idea860LC at sight
ChinaAcetylene-basedOffer Received925-935LC at sight
South KoreaEthylene-basedOffer Received870LC at sight
South KoreaEthylene-basedBuy Idea860LC at sight
TaiwanEthylene-basedOffer Received870LC at sight
TaiwanEthylene-basedBuy Idea860LC at sight
ThailandEthylene-basedBid Given875LC at sight
ThailandEthylene-basedPurchased890LC at sight
ThailandEthylene-basedOffer Received930LC 60 days
ThailandEthylene-basedBid Given910LC 60 days
ThailandEthylene-basedPurchased905LC 60 days

Range of local/localized ethylene-based PVC transactions in February, FD Indonesia basis and excluding 10% VAT

OriginTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment Term
IndonesiaBuy IdeaUSD920-Cash In Advance
IndonesiaOffer GivenUSD920-980-Cash In Advance
IndonesiaOffer GivenUSD940-970-30 Days Credit Term
IndonesiaOffer ReceivedUSD900-980-Cash In Advance
IndonesiaOffer ReceivedUSD950-980-30 Days Credit Term
IndonesiaPurchasedUSD880-920-Cash In Advance
IndonesiaPurchasedUSD955-980-30 Days Credit Term
IndonesiaPurchasedUSD1,010-60 Days Credit Term
IndonesiaSell IdeaUSD900-920-Cash In Advance
IndonesiaSell IdeaUSD960-970-30 Days Credit Term
IndonesiaSoldUSD940-970-30 Days Credit Term
Southeast AsiaOffer ReceivedIDR14,000,000839Net 30 days

Range of import PVC transactions in February, CIF Indonesia Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Payment Term
ChinaAcetylene-basedOffer Received870LC at sight
ChinaAcetylene-basedOffer Received840LC 30 days
ChinaAcetylene-basedBid Given830LC at sight
JapanEthylene-basedOffer Received900LC at sight
JapanEthylene-basedBid Given870LC at sight
ThailandEthylene-basedOffer Received935LC at sight

Range of local/localized PVC transactions in March, FD Indonesia basis and excluding 10% VAT in all terms

OriginProductTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment Term
ChinaAcetylene-basedOffer ReceivedUSD960-Cash In Advance
ChinaAcetylene-basedOffer GivenUSD950-60 Days Credit Term
IndonesiaEthylene-basedOffer GivenIDR13,000,000-13,500,000779-808Cash In Advance
IndonesiaEthylene-basedOffer GivenUSD850-980-Cash In Advance
IndonesiaEthylene-basedOffer ReceivedUSD910-980-Cash In Advance
IndonesiaEthylene-basedOffer ReceivedUSD950-990-30 Days Credit Term
IndonesiaEthylene-basedOffer ReceivedUSD1,010-45 Days Credit Term
IndonesiaEthylene-basedPurchasedUSD900-980-Cash In Advance
IndonesiaEthylene-basedPurchasedUSD950-990-30 Days Credit Term
IndonesiaEthylene-basedPurchasedUSD1,010-45 Days Credit Term
IndonesiaEthylene-basedSell IdeaUSD990*-Cash In Advance
IndonesiaEthylene-basedSell IdeaUSD900-920-Cash In Advance
IndonesiaEthylene-basedSoldUSD980-Cash In Advance
IndonesiaEthylene-basedSoldUSD930*-960*-Cash In Advance
Southeast AsiaEthylene-basedOffer ReceivedIDR14,000,00083930 Days Credit Term
ThailandEthylene-basedOffer ReceivedUSD870-880-30 Days Credit Term
ThailandEthylene-basedOffer GivenUSD990-60 Days Credit Term
ThailandEthylene-basedSoldUSD990-60 Days Credit Term
Description: *Transactions for March shipment

Range of import PVC transactions in March, CIF Indonesia Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Payment Term
ChinaAcetylene-basedOffer Received830-860LC at sight
ChinaAcetylene-basedPurchased825LC 60 days
ThailandEthylene-basedBid Given890LC at sight
ThailandEthylene-basedOffer Received895LC 60 days
TaiwanEthylene-basedOffer Received830LC at sight
USAEthylene-basedOffer Received880LC at sight
ThailandEthylene-basedPurchased925LC 60 days

Tags: Asia Pacific,English,Indonesia,PVC,Quarterly,SEA

Published on April 6, 2020 3:48 PM (GMT+8)
Last Updated on April 6, 2020 3:48 PM (GMT+8)