Vietnam PVC Demand Shows No Sign Of Improvement
- Local offers were mostly stable from last week
- January shipment offers from the leading Taiwanese PVC producer has been announced
- Demand remains on a slippery slope
Market sources voiced out to SSESSMENTS.COM that Vietnam PVC demand is showing no sign of improvement this week. In the domestic market, local ethylene-based PVC offers were mostly stable from a week earlier. Current local offers stand at VND20,800,000/ton ($897/ton) on cash, FD Ho Chi Minh basis and excluding 10% VAT. Some local traders skipped offering this week as the majority of converters purchase the cargoes directly from local producers. From the import market, local converters received January shipment offers from the leading Taiwanese PVC producer at $830/ton on LC at sight, CIF Haiphong Port. However, the converter’s buy idea is $20/ton lower than the initial offer level.
In general, demand for PVC in the Vietnam market is still ongoing; however, it showed no sign of improvement compared to last week. Currently, most converters adopted a cautious stance and relied on the remaining stocks on-hand for production, due to slow sales for finished products. This year, the influx of Chinese goods to the Vietnam market poses a fierce competition for local converters. Market sources in Vietnam informed SSESSMENTS.COM that positive signals stemming from US-China trade talks have a limited impact on the market. On the supply front, the allocation for January shipment from the leading Taiwanese PVC producer is limited, while PVC supply in the Vietnam market remains ample.
For the outlook, most market participants in Vietnam foresee that PVC demand would remain subtle until the Tet holiday (Vietnamese Lunar New Year). As stated to SSESSMENTS.COM, some sources opined that an increase in January offers from local and foreign suppliers is possible, following the leading Taiwanese PVC producer’s pricing strategy.
Tags: Asia Pacific,English,EN PVC VIETNAM WSS,Polyvinyl Chloride (PVC),Southeast Asia,Vietnam,WeeklySSESSMENTS PVC prices,Vietnam PVC pricesPublished on December 17, 2019 11:31 PM (GMT+8)
Last Updated on January 14, 2020 7:43 AM (GMT+8)