Vietnamese players: Import PVC softened; market might revive soon

Couples of international suppliers have down adjusted PVC offers to Vietnam this week amid persistent weak demand. It appears that buyers have accepted the cut and started making replenishment while traders are hoping to achieve prices below the $900/ton mark threshold.

Offers for USA origin cargoes fell $40/ton week on week to $920/ton CIF Vietnam, LC AS term, and deals reported at $890/ton with the same term. A buyer commented, “We have also obtained a small discount from Japanese supplier to close deals at $910/ton with the same term. We decided to make fresh purchases as market would revive after Chinese buyers return from the holiday.”

Another converter said, “We purchased some cargoes to maintain comfortable inventory levels until end of this month. While there are chances that PVC market would improve after the National Day holiday in China, we prefer to be cautious. We hope to obtain additional discount in the coming weeks.”

At the meantime, buying interest from local traders seems weak, “Because local market is not catching up. We think prices might slip below the $900/ton threshold and we would make replenishment by then. At the moment, we are on the sideline,”

Demand in India is picking up as the monsoon season ended, however, players are downplaying the possibility that India market would support the whole region considering the issues with cash availability and the GST.

Import PVC to Vietnam currently stand at $890-950/ton, CIF, LC AS term.