Local ethylene-based PVC offers, FD basis (excluding VAT in all terms)
Import ethylene-based PVC offers on LC at sight, CIF Main Port basis
Export ethylene-based PVC offers on LC at sight, FOB Thailand basis
Southeast Asian Market Players Gave Lukewarm Responses Towards Significant Price Adjustment From Leading Taiwanese PVC Producer
- Domestic markets remain quiet due to the lockdowns
- Hefty adjustment from the leading Taiwanese PVC producer gained lukewarm responses
- Outlook for PVC remains gloomy until June
Based on the data collected by SSESSMENTS.COM, the significant downward price adjustment from the leading Taiwanese PVC producer gained lukewarm responses from Southeast Asian market players. In the domestic market, two ethylene-based PVC producers in Thailand are offering at the same level, at THB26,500/ton ($814/ton) on 30 days credit terms, FD Thailand basis and excluding 7% VAT. SSESSMENTS.COM noted that this level is THB1,000/ton ($30/ton) lower from last week. In the Philippines, the local PVC producers have stopped offering to the market as the company had to shut their plants following the lockdown imposed by the government. In the import market, May shipment offers from the leading Taiwanese PVC producer surfaced with a reduction of $160/ton from April shipment. To date, Thai PVC producers have not announced the fresh offers for May shipment yet. However, one of the producers hinted to follow the pricing strategy from the leading Taiwanese PVC producer and is planning to offer between $620-630/ton on LC at sight, FOB Thailand basis. Detailed information for Indonesia and Vietnam market is available in WeeklySSESSMENTS of the respective countries.
Overall, demand for PVC within the Southeast Asia market reported subdued amid lockdowns. Lockdown in Malaysia, Thailand, and the Philippines are implemented until the end of May. However, some converters in Malaysia have the interest to procure some Taiwanese cargoes due to the hefty price reduction. On the supply front, May shipment allocation from Japan’s Taiyo Vinyl Corporation is around 10,000-15,000 tons for both Southeast Asia and China market, lower than normal monthly quantity due to the previous maintenance shutdown. In the production sector, SSESSMENTS.COM noted that Philippines’ General Chemical & Resin Consortium (GenChem)’s 20,000 tons/year PVC plant remains shut amid the lockdown.
Looking ahead, the majority of Southeast Asian PVC market players stated a bearish outlook as the fears of Coronavirus are still haunting the region. Some market players even opined that ethylene-based PVC prices have room to decrease further until June, SSESSMENTS.COM was told.
Click below to view related stories and content on SEA PVC:
WeeklySSESSMENTS: SEA PVC Prices W/C April 13
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Tags: Asia Pacific,Asia Pacific,Asia Pacific,English,PVC,PVC,PVC,SEA,SEA,SEA,Weekly,Weekly,Weekly
Published on April 21, 2020 1:17 PM (GMT+8)Last Updated on September 9, 2020 10:35 AM (GMT+8)
