Coronavirus Outbreak Drags Vietnam PVC Market Outlook, Workers Stuck In Hometown Due To Limited Transportation
- Deals at VND200,000-400,000/ton (8.5-17/ton) lower than initial offer
- Some workers unable to return to work due to limited transportation
- Prices predicted to move lower
Vietnamese market players opined to SSESSMENTS.COM that the outbreak of Coronavirus will drag the outlook for PVC market. In the local market, the offers for local ethylene-based PVC are kept stable compared to the offer level before the Lunar New Year holiday. However, other sources stated that there are no fresh offers that have been received yet so far. Before the holiday, a local producer concluded deals at VND21,300,000-21,700,000/ton ($915-932/ton) on cash, FD Vietnam basis, and excluding 10% VAT which is between VND200,000-400,000/ton ($8.5-17/ton) lower from the initial offer level. From the import market, market sources received additional cargoes for Taiwanese ethylene-based PVC for February shipment and the sell idea stands between $850-860/ton on LC at sight, CIF Vietnam Main Port basis.
SSESSMENTS.COM was informed that the demand remains slow as the market activities have just resumed following Lunar New Year Holiday. However, due to the Coronavirus outbreak, some market players have not returned to work yet and are still in their hometown as the transportations have been quite limited. There are no PVC supply issues recorded in the country.
Pertaining to the outlook, market players opined to SSESSMENTS.COM that PVC prices are predicted to move downward. Demand-wise, it is projected to remain slow as players stay away from the market longer than initially expected in a bid to contain the virus outbreak leading to a quieter-than-usual month. Other sources prefer to monitor the market direction before taking any trading or business decision.
Tags: Asia Pacific,English,EN PVC VIETNAM WSS,Polyvinyl Chloride (PVC),Southeast Asia,Vietnam,WeeklySSESSMENTS PVC prices,Vietnam PVC pricesFebruary 4, 2020 12:39 PM