Local ethylene-based PVC offers on cash/credit terms, FD basis (excluding VAT in all terms)
Import PVC offers on LC at sight, CFR Main Port basis
Moderate Demand Observed In Southeast Asia PVC Market As Traditional Lean Season Continues
- Philippines producers have sold out July delivery allocation
- Overall demand is categorized as moderate
- Demand expected to remain stable before the raindrops getting intense
Moderate demand observed in Southeast Asia PVC market as the traditional lean season continues. Market sources in Thailand told that offers for local PVC cargoes remain unchanged from last week, standing at THB27,500/ton ($876/ton) on FD basis and excluding 7% VAT. Changes only occurred on payment terms, in which suppliers enact short credit terms for 45-60 days from the usual 90-100 days. SSESSMENTS.COM noted this conduct undertaken by businesses in Thailand to maintain cash flow. From the Philippines, local producers informed that they already sold out July allocation since last week, and have yet to announce offers for August delivery. In the import market, a Chinese trader offered acetylene-based PVC cargoes to Myanmar at $840/ton on LC at sight, CFR Main Port basis, but received an unfavourable response from customers due to high price. Detailed information for Indonesia and Vietnam market is available in WeeklySSESSMENTS of the respective countries.
Moderate demand for PVC resins reported from Malaysia and the Philippines this week. Meanwhile, in Thailand, traders informed that customers only buy in small quantities with most of them still having high inventory from last month’s procurements. Meanwhile, demand for end-products has started to recuperate as local activities recover and the export market continues to improve. A Thai converter told SSESSMENTS.COM that their production rate increased by 10-20% from last month and the plant is now running at 70%. However, concern regarding supply from Thai PVC producers still plagued market players, compounded by the possibility of Taiwanese PVC producers limiting its August shipment allocation. In the production sector, SCG’s Thai Plastic and Chemicals has shut its PVC plant with an annual capacity of 530,000 tons for maintenance since July 10, and will remain off-line for one week.
Market players shared with SSESSMENTS.COM that overall PVC demand is expected to remain stable until Q3 2020 ends. Buying sentiment would start to weaken in September once the rainy season reaches its peaks. For prices, some players expect the leading Taiwanese PVC producer to roll over offers for August shipment, considering the slow demand amid the rainy season in Southeast Asia and India. Meanwhile, a Thai producer expects the Taiwanese producer to increase their offers by $20/ton for August shipment since they are planning to increase their offers by the same amount for August.
Tags: Asia Pacific,English,PVC,SEA,Weekly
Published on July 14, 2020 10:51 AM (GMT+8)Last Updated on July 14, 2020 11:34 AM (GMT+8)
