Local PVC prices in Vietnam firmed up, market confident remains low

Vietnamese players reported that a major local producer has announced fresh PVC offers for July delivery with VND200,000/ton ($9/ton) increased from last month in spite of lethargic demand condition. The producer latest offer stand at VND19,800,000/ton ($871/ton) without VAT, FD Vietnam, cash term. Many buyers did not respond very positively towards the new levels.

A compounder received the fresh prices said, “It is hard for buyers to accept the hike as import market is showing weaknesses. We are on the side-line at the moment due to comfortable inventories on hand.”

A profile and pipe maker added, “It is monsoon season and we mostly running on remaining inventories given slow end product business. Upstream market is weak too, therefore we are not seeing any strong support for a rebound. We prefer to source material hand to mouth basis to avoid price risk.”

Vietnamese buyers are mostly looking at stable market condition throughout July and despite a major shutdown reported in Taiwan, diminishing demand in India ahead of the monsoon would balance up the market.