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QuarterlySSESSMENTS: Q1 2020 SEA PVC Prices

Author: SSESSMENTS

  • Local PVC offers in the region generally captured on an uptrend
  • PVC resins demand reported subdued
  • PVC prices will decrease further in the upcoming months

In January, local ethylene-based PVC offers in Southeast Asia region were captured on an uptrend. Compared to December, January delivery offers from local PVC producers in Thailand increased between THB500-1,000/ton ($15-30/ton). While in the Philippines, the offers moved up by PHP1,000/ton ($20/ton) and between VND200,000-400,000/ton ($8-17/ton). Likewise, February delivery offers from a local PVC producer in Thailand increased by THB1,000/ton ($30/ton), while in the Philippines, due to the limited supply, a Vietnamese PVC producer applied a significant increase of VND1,000,000/ton ($42/ton). Entering March, SSESSMENTS.COM’s data showed that local offers in Thailand were still on an uptrend with an increment of between THB1,000-1,500/ton ($30-46/ton). However, in the Philippines, a local PVC producer adjusted down local PVC offers by PHP1,000/ton ($20/ton) in the second half of March citing slow market amid the Coronavirus pandemic.

In the import market, the leading Taiwanese PVC producer decided to announce February shipment offers earlier than the schedule with an increase of $20/ton. Likewise, February shipment offers from a Thai PVC producer to Malaysia and the leading Indonesian PVC producer increased by the same amount. All offers compared to January shipment. While March shipment offers from the leading Taiwanese PVC producer emerged with an increase of $10/ton as compared to February shipment. Follow-suit, March shipment offers from Thai and Indonesian PVC producers to Malaysia went up by $15/ton and $10/ton respectively as compared to the same period. However, at the beginning of March, foreign suppliers decided to postpone the announcement for April shipment offers considering the significant drop in crude oil prices. While coming to the end of March, Malaysian market players informed SSESSMENTS.COM on receiving April shipment offers from Thai PVC producers at $40-80/ton lower than March shipment. Detailed information for Indonesia and Vietnam market is available in QuarterlySSESSMENTS of the respective countries.

In general, PVC demand in the Southeast Asia region was considered subdued in the first quarter of 2020. Limited activities recorded due to the Lunar New Year holiday, the slump in crude oil prices and the Coronavirus outbreak. Moreover, the lockdown in several countries has led factories to shut or cut production rates. However, market players informed SSESSMENTS.COM that PVC demand in the Philippines in January and February was strong due to the healthy demand for PVC pipe, dry season, and ongoing government projects.

In the production sector,  PVC plant at Thai Plastic and Chemicals, a subsidiary of SCG Chemicals Co., Ltd, with a capacity of 530,000 tons/year, located in Map Ta Phut, Rayong Province, Thailand was brought back on-stream on January 5 following maintenance shutdown on December 26. While in the Philippines, General Chemical & Resins (GenChem)’s 20,000 tons/year PVC plant was forced to shut after the government announced a lockdown started from March 17 as workers could not reach the factory, as informed to SSESSMENTS.COM.

Entering Q2 2020, the majority of Southeast Asian market players opined to SSESSMENTS.COM that buyers are expected to stay on the sidelines and halt procurement activities amid the Coronavirus pandemic. As such, PVC prices will decrease further and PVC demand in the region would remain sluggish.

Range of local ethylene-based PVC transactions in January on FD basis, excluding VAT (except in PHP term including 12% VAT, all equivalent in USD excluding VAT)

OriginTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment TermDelivery Location
PhilippinesBid GivenPHP51,500906Cash In AdvancePhilippines
PhilippinesOffer GivenPHP55,000-56,000968-98690 Days Credit TermPhilippines
PhilippinesOffer ReceivedPHP52,000915Cash In AdvancePhilippines
PhilippinesPurchasedPHP51,500906Cash In AdvancePhilippines
ThailandBuy IdeaTHB28,00085175 Days Credit TermThailand
ThailandOffer GivenTHB27,500-28,000835-85160 Days Credit TermThailand
ThailandOffer GivenTHB27,500-28,000835-851Cash In AdvanceThailand
ThailandOffer ReceivedTHB27,25082860 Days Credit TermThailand
ThailandOffer ReceivedTHB27,000-28,500820-86675 Days Credit TermThailand
ThailandOffer ReceivedTHB27,500-28,000835-851Cash In AdvanceThailand
ThailandPurchasedTHB27,500835Cash In AdvanceThailand
ThailandSoldTHB27,500-28,000835-85160 Days Credit TermThailand

Range of import PVC transactions in January

OriginProductTransaction TypeOffers (USD/ton)Payment TermDelivery TermDelivery Country
ChinaAcetylene-basedOffer Received870LC at sightCIFMalaysia
ChinaAcetylene-basedPurchased860LC at sightCIFMalaysia
ChinaAcetylene-basedOffer Given860LC at sightCIFSoutheast Asia
IndonesiaEthylene-basedSell Idea870LC at sightCIFMalaysia
IndonesiaEthylene-basedBuy Idea860-870LC at sightCIFMalaysia
IndonesiaEthylene-basedOffer Received865LC at sightCIFMalaysia
IndonesiaEthylene-basedSell Idea870LC at sightCIFSingapore
JapanEthylene-basedOffer Given870LC at sightCIFSoutheast Asia
JapanEthylene-basedSold860-870LC at sightCIFSoutheast Asia
South KoreaEthylene-basedOffer Received840-850LC at sightCIFMalaysia
TaiwanEthylene-basedOffer Given860LC at sightCIFSoutheast Asia
ThailandEthylene-basedBuy Idea885-890LC at sightCIFMalaysia
ThailandEthylene-basedOffer Given890-900LC at sightCIFMalaysia
ThailandEthylene-basedOffer Received895LC at sightDAPMalaysia
ThailandEthylene-basedOffer Received895TTCIPMalaysia
ThailandEthylene-basedOffer Given880-890LC at sightCIFSoutheast Asia
USAEthylene-basedSold850LC at sightCIFSoutheast Asia

Range of local/localized PVC transactions in February on FD basis, excluding VAT (except in PHP term including 12% VAT, all equivalent in USD excluding VAT)

OriginProductTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment TermDelivery Location
ChinaAcetylene-basedOffer GivenMYR4,040925Cash In AdvanceMalaysia
ChinaEthylene-basedOffer GivenMYR4,040925Cash In AdvanceMalaysia
PhilippinesEthylene-basedOffer GivenPHP56,000-57,000986-1,00330 Days Credit TermPhilippines
PhilippinesEthylene-basedOffer GivenPHP56,000-57,000986-1,00390 Days Credit TermPhilippines
PhilippinesEthylene-basedOffer ReceivedPHP52,000-52,750915-928Cash In AdvancePhilippines
ThailandEthylene-basedOffer GivenTHB28,000-29,000851-88160 Days Credit TermThailand
ThailandEthylene-basedOffer GivenTHB28,000-29,000851-881Cash In AdvanceThailand
ThailandEthylene-basedOffer ReceivedTHB29,00088130 Days Credit TermThailand
ThailandEthylene-basedOffer ReceivedTHB28,000-29,000851-88160 Days Credit TermThailand
ThailandEthylene-basedPurchasedTHB28,00085160 Days Credit TermThailand

Range of import PVC transactions in February

OriginProductTransaction TypeOffers (USD/ton)Payment TermDelivery TermDelivery Country
ChinaAcetylene-basedOffer Received815-865LC at sightCIFMalaysia
ChinaAcetylene-basedOffer Received820-830LC at sightCIFMyanmar
ChinaEthylene-basedOffer Received860-890LC at sightCIFMalaysia
ChinaEthylene-basedPurchased860LC at sightCIFMalaysia
ChinaEthylene-basedOffer Received900LC at sightCIFMyanmar
ChinaEthylene-basedOffer Received900LC at sightCFRMyanmar
IndonesiaEthylene-basedBid Given860LC at sightCIFMalaysia
IndonesiaEthylene-basedOffer Given880LC at sightCFRMalaysia
IndonesiaEthylene-basedOffer Given870-880LC at sightCIFMalaysia
IndonesiaEthylene-basedOffer Received870-880LC at sightCIFMalaysia
IndonesiaEthylene-basedPurchased865-880LC at sightCIFMalaysia
IndonesiaEthylene-basedOffer Given880LC at sightCFRSingapore
JapanEthylene-basedOffer Given880LC at sightCIFSoutheast Asia
JapanEthylene-basedSold880LC at sightCIFSoutheast Asia
South KoreaEthylene-basedOffer Received850-860LC at sightCIFMalaysia
South KoreaEthylene-basedPurchased850-860LC at sightCIFMalaysia
TaiwanEthylene-basedOffer Received870LC at sightCIFMalaysia
TaiwanEthylene-basedOffer Received860LC at sightCIFMyanmar
TaiwanEthylene-basedOffer Given870LC at sightCIFSoutheast Asia
TaiwanEthylene-basedSold850-870LC at sightCIFSoutheast Asia
ThailandEthylene-basedOffer Given900-910LC at sightCFRMalaysia
ThailandEthylene-basedOffer Given910-920LC at sightCIFMalaysia
ThailandEthylene-basedOffer Received905-910LC at sightDAPMalaysia
ThailandEthylene-basedOffer Received900-955LC at sightCIFMalaysia
ThailandEthylene-basedOffer Received910TTCIPMalaysia
ThailandEthylene-basedOffer Received910TTDAPMalaysia
ThailandEthylene-basedOffer Received930-940LC at sightDAPMalaysia
ThailandEthylene-basedPurchased900LC at sightCIFMalaysia
ThailandEthylene-basedPurchased910TTCIPMalaysia
ThailandEthylene-basedPurchased910TTDAPMalaysia
ThailandEthylene-basedSold900-910LC at sightCFRMalaysia
ThailandEthylene-basedOffer Given900-910LC at sightCFRPhilippines
ThailandEthylene-basedSold900-910LC at sightCFRPhilippines

Range of local ethylene-based PVC transaction in March on FD basis, excluding VAT (except in PHP term including 12% VAT, all equivalent in USD excluding VAT)

OriginTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment TermDelivery Country
PhilippinesOffer GivenPHP55,000-57,000968-1,00390 Days Credit TermPhilippines
ThailandBuy IdeaTHB29,00088130 Days Credit TermThailand
ThailandOffer GivenTHB29,000-29,500881-896Cash In AdvanceThailand
ThailandOffer ReceivedTHB28,500-29,500866-89630 Days Credit TermThailand
ThailandPurchasedTHB28,000-29,500851-89630 Days Credit TermThailand

Range of import PVC transactions in March

OriginProductTransaction TypeOffers (USD/ton)Payment TermDelivery TermDelivery Country
ChinaAcetylene-basedOffer Received810LC at sightCIFMalaysia
ChinaAcetylene-basedOffer Received840LC at sightCIFThailand
ChinaEthylene-basedOffer Received820LC at sightCIFMalaysia
ChinaEthylene-basedOffer Received820-825LC at sightCIFMyanmar
IndonesiaEthylene-basedOffer Given820LC at sightCFRSoutheast Asia
IndonesiaEthylene-basedSold870LC at sightCFRMalaysia
IndonesiaEthylene-basedSold800-820LC at sightCIFMalaysia
IndonesiaEthylene-basedSold870LC at sightCFRSingapore
IndonesiaEthylene-basedSold800-820LC at sightCIFSingapore
JapanEthylene-basedOffer Received880LC at sightCIFMalaysia
JapanEthylene-basedOffer Given830LC at sightCIFSoutheast Asia
JapanEthylene-basedSold830LC at sightCIFSoutheast Asia
South KoreaEthylene-basedOffer Received800LC at sightCIFMalaysia
South KoreaEthylene-basedOffer Received890LC at sightCIFThailand
TaiwanEthylene-basedOffer Given810-820LC at sightCIFSoutheast Asia
ThailandEthylene-basedOffer Received800-870LC at sightCIFMalaysia
ThailandEthylene-basedPurchased860LC at sightCIFMalaysia
ThailandEthylene-basedOffer Received860TTCIPMalaysia
ThailandEthylene-basedOffer Received865LC at sightDAPMalaysia
ThailandEthylene-basedOffer Received825LC at sightDAPMalaysia
ThailandEthylene-basedSold865LC at sightDAPMalaysia

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

Published on April 8, 2020 1:00 PM (GMT+8)
Last Updated on September 24, 2020 5:01 PM (GMT+8)