As December delivery prices slid, PVC buying interest in local Vietnam improved

Following the large price cuts from international suppliers, it is reported that a major domestic PVC maker in Vietnam has announced December delivery offers with VND800,000/ton ($35/ton) reduction compared to earlier this month with deals observed at VND19,800,000/ton ($871/ton) without VAT, FD Vietnam, cash term.

Converters in Northern Vietnam are showing great interest in making replenishment given improved end product businesses. A pipe manufacturer informed, “We are entering peak season at the moment. Domestic materials are more competitive than imports and we plan to stock up inventories for January 2018 too.”

Another compounder said, “We only have comfortable stock until end of this month. Market is currently at multi-month low levels and with better buying interest, suppliers might have support to reverse the trend soon. We shall restock within this week.”

The general expectation is that market has reached the bottom and likely to witness medium range rebound in the coming month based on the demand condition. Overseas sellers might have completed depleting year-end inventories, which might keep market firm until first quarter 2018, before Lunar New Year holidays slow down buying interest.