No Sign Of Improvement, Will Demand For PVC End-Products In Vietnam Recover Ahead Of Lunar New Year?
- Local and import PVC offers were mostly on a downtrend
- A Japanese PVC producer increased allocation to Vietnam by 5%
- Players cited Lunar New Year’s preparation as a factor that could lift end-products demand
No sign of improvement, market players questioned whether demand for several PVC end-products in Vietnam will recover ahead of the Lunar New Year. According to the data collected by SSESSMENTS.COM’s team, local offers for ethylene-based PVC from the traders’ end emerged lower by VND200,000/ton ($8.5/ton) compared to last week’s level to match the market trend. Meanwhile, a local PVC producer stated that the company’s offer for November delivery has been sold out, mostly at VND20,800,000/ton ($891/ton) on cash, FD Vietnam basis and excluding 10% VAT. In the import market, December shipment offers for ethylene-based PVC of Japan and Philippines origin decreased by $10/ton compared to November. To date, deals for the Philippines cargoes captured at $5/ton lower than the initial offer level. Meanwhile, Taiwanese PVC cargoes are available at $800-810/ton on LC at sight, CIF Vietnam main port basis.
The majority of Vietnamese market players told SSESSMENTS.COM that demand for PVC resins as well as end-products in the country remains sluggish and no sign of improvement seen so far. Some players opined that the current condition expected to prolong until next month. However, a local PVC producer stated that demand from their end has slightly improved although it is still slower compared to the same period last year. On the supply front, a Japanese PVC producer increased allocation to the Vietnam market by 5% as the company found no difficulties in selling their cargoes to the country.
Most market players opined to SSESSMENTS.COM that PVC prices would move further down in the upcoming weeks due to weak demand. However, some converters still expecting demand for several PVC end-products such as bags, containers, and film would recover ahead of the Lunar New Year as buyers would need to purchase such products for the preparation.
Tags: Asia Pacific,English,EN PVC VIETNAM WSS,Polyvinyl Chloride (PVC),Southeast Asia,Vietnam,WeeklySSESSMENTS PVC prices,Vietnam PVC pricesPublished on November 19, 2019 8:10 PM (GMT+8)
Last Updated on January 14, 2020 7:43 AM (GMT+8)