Local PVC markets hit multi-month lows in SE Asia
Oct. 10, 2018
In Southeast Asia, domestic producers announced their new PVC prices with visible decreases from last month, following the footsteps of a major Taiwanese producer who approached China and India with sizeable drops for October.
In Vietnam, a local producer applied decreases of VND1,400,000-1,800,000/ton ($60-77/ton with the recent parity) on its October PVC offers to the domestic market.
“We don’t have any export allocation for this month as our supply is not high. VCM costs are high while crude oil futures are surging. Despite these factors, the local market remains on a soft note in the face of unsupportive demand. We hope that buying interest will gradually pick up as the rainy season is about to end,” a producer source noted.
An Indonesian producer cut its October PVC 67 prices by $70/ton from September, saying, “Demand has been okay since our price reduction.” The producer’s k67 offers currently stand at $910-930/ton for large quantities and at $930-960/ton for small quantities, all on FD, cash basis.
A producer in the Philippines reduced its new offers by $90/ton from last month. “Buyers are accepting our new offer levels as they need to replenish their stocks for Christmas preparations. The depreciation of the peso is keeping them away from the import market,” a producer source opined.
In Thailand, converters reported receiving local PVC offers with decreases of THB2000/ton ($62/ton). A compounder commented, “Market sentiment is persistently weak in the face of ongoing rains. We believe that local prices still have room for further declines.”
Data from ChemOrbis Price Index reveal that the weekly averages of PVC prices in the above-mentioned markets have recently reached their lowest levels seen in several months. The local PVC markets in Vietnam, the Philippines and Malaysia are currently standing at their lowest levels since around early 2018 while prices in Thailand and Indonesia have recently hit around 14-16-week lows.