October Delivery Offers From Local Producer Captured With Corrections As Hinted Last Week
- Local offers dropped, but the levels are still uncompetitive compared to import offers
- Vietnam’s TPC Vina shuts PVC line No. 1 for maintenance since September 24
- PVC prices in November are likely to be lower than the current levels
October delivery offers from one of the Vietnamese PVC producers in the market were captured with corrections as hinted by the producer last week. The downward corrections were between VND300,000-400,000/ton ($13-17/ton) compared to the levels for September delivery. According to market players contacted by SSESSMENTS.COM, the decision to decrease offers was reasonable considering the current demand for PVC and converters’ decision to lower end-product prices. However, some of the players opined that despite the decreases, the offers are still uncompetitive compared to import offers. For cargoes of US origin, the offers stand between $815-820/ton on LC at sight, CIF Vietnam Main Port basis.
Since demand for the end products is still weak, some converters reduced purchasing quantity while some skipped procurements. Therefore, the demand for PVC resins in Vietnam is also slow and expected to remain unchanged until December. On the production sector, Vietnam’s TPC Vina Plastic and Chemical Corp. informed SSESSMENTS.COM that one of the company’s PVC lines, line No.1 with a capacity of 80,000 tons/year, is shut for maintenance since September 24. The shutdown will last until October 10. No supply issues from the producer despite the maintenance, but the production loss is estimated to be around 1,400 tons.
Pertaining to the outlook, the majority of market players told SSESSMENTS.COM that there are chances for further decreases in PVC prices for November shipment as demand will not improve until the high season starts in early December. Meanwhile, some others believe that prices might also stabilize at the current levels.
Tags: Asia Pacific,English,EN PVC VIETNAM WSS,Polyvinyl Chloride (PVC),Southeast Asia,Vietnam,WeeklySSESSMENTS PVC prices,Vietnam PVC pricesPublished on October 1, 2019 8:25 PM (GMT+8)
Last Updated on January 14, 2020 7:43 AM (GMT+8)