Vietnam PVC Market Showed Lackluster Performance On Holiday Mood
- Import PVC prices captured on an upward trend
- The number of transactions and inquiries were limited
- Upcoming maintenance shutdown at AGC Chemicals’ PVC plant
Vietnam PVC market showed a lackluster performance due to holiday mood, sources told SSESSMENTS.COM. For January delivery, current offers for ethylene-based PVC cargoes are mostly available at VND21,000,000/ton ($903/ton) on cash, FD Ho Chi Minh basis and excluding 10% VAT. As the Lunar New Year holiday is drawing nearer, the number of transactions and inquiries are gradually decreasing. In the import market, February shipment offers from the leading Taiwanese PVC producer captured at $20/ton higher than the offer level available for January shipment. Similarly, a Thai PVC producer initiated a price increase of $25/ton compared to the same period. Depending on the delivery location, February shipment offers from the producer’s end stand between $880-890/ton on LC at sight, CIF Vietnam Main Port basis.
Overall, demand in the Vietnam PVC market stayed on a downward trajectory over the week. Ahead of the Tet holiday (Vietnamese Lunar New Year), most local converters adopt a cautious stance and rely on the remaining stocks on-hand for production. Besides, most buyers skipped procurement activities due to sufficient inventory on hand. On the production front, AGC Chemicals Vietnam Co., Ltd plans to shut its PVC plant in March for maintenance purposes. The plant with a capacity of 150,000 tons/year is slated to remain off-line for one week. On the supply side, the allocation for January delivery from a local PVC producer is limited, while PVC supply in the Vietnam market remains sufficient.
For the outlook, a local producer voiced out their sell idea for February delivery at $20/ton higher than January’s level following the leading Taiwanese PVC producer’s pricing strategy. Demand-wise, some sources opined to SSESSMENTS.COM that most converters will start restocking activities after the Lunar New Year holiday.
Tags: Asia Pacific,English,EN PVC VIETNAM WSS,Polyvinyl Chloride (PVC),Southeast Asia,Vietnam,WeeklySSESSMENTS PVC prices,Vietnam PVC pricesPublished on January 14, 2020 10:07 PM (GMT+8)
Last Updated on January 17, 2020 2:13 AM (GMT+8)