Print

Slower than expected demand condition across Asia has created inevitable pressure on overseas PVC suppliers. Regardless of the firming upstream costs, Vietnamese buyers appear having an upper hand in negotiation for March shipment cargoes, with deals for USA materials fell to $820/ton CIF term while there have been reports that deals for Thailand cargoes are at $870/ton with the same term.

A buyer purchased 1500 tons of USA cargoes at $820/ton said, “Demand for our end product is not very strong at the moment. The general sentiment is soft, and therefore, the supplier agreed to $30/ton discount. We are fully covered until mid-April and would withdraw to the sideline for now.” 

A number of other converters reported having not concluded deals for March shipment yet as a result of comfortable inventories and weak end product demand. “We are monitoring the market very closely at the moment. Weak demand in China and India might drag the market lower in the near term,” a source added.

Demand for PVC in Vietnam traditionally slows in the post-Lunar New Year period. At the time this report is published, import PVC to Vietnam is reported in the range $820-900/ton CIF, LC AS. 

Country
Vietnam