Southeast Asian PVC producers are announcing a fresh round of increases on their August PVC prices to their domestic markets, as per ChemOrbis. Players had been expecting higher August prices owing to firmer upstream costs. Sellers’ August increase targets have been given a boost by the fact that demand has been better than had been generally anticipated at the start of the month.
“We increased our August prices by US$60/ton from July and were able to sell around 10% of our monthly allocation shortly after announcing our new prices as we are seeing better demand from the local market than we had expected before the holidays,” a source at an Indonesian PVC producer reported. Another Indonesian producer commented, “We raised our August prices by US$80/ton. We are seeing steady demand from the local market despite the upcoming Ramadan holidays and have elected to divert some of our export allocations to the local market in order to cover domestic demand.” In Malaysia, a source at a domestic producer stated that they raised their domestic prices by MYR50/ton (US$16/ton) this week. “We are receiving a good number of inquiries this week and do not have enough material to meet all of our customers’ requests. A converter manufacturing PVC flooring products stated, “Local supply is tight and domestic prices are moving higher as several suppliers do not have any material to offer for August.” Players in Thailand report that initial August prices for domestic material have increased by THB1500-3000/ton (US$48-95/ton) from July. A source at a Thai producer told ChemOrbis, “We increased our prices to the domestic market by THB2000/ton (US$63/ton). We are receiving a good number of inquiries from PVC pipe manufacturers as the government has announced a number of construction projects for the third quarter and pipe manufacturers are accordingly trying to maintain healthy stock levels.” A PVC pipe manufacturer reported, “We are seeing good demand for our end products these days in spite of the onset of the monsoon season.” A distributor added, “Local supply is tight this month due to some production problems on the part of a domestic producer and we have only been able to secure around 70% of our normal monthly allocation for August.” Players in Vietnam also reported seeing better than expected demand and firmer prices for August. “We increased our prices by US$40/ton for August in accordance with firmer demand from the local market,” a source at a Vietnamese producer reported. A Vietnamese converter manufacturing PVC doors, pipes and fittings commented, “We are seeing stronger demand for our end products these days and we are hopeful that demand will remain healthy in the weeks ahead. The offers we received from the distribution market have increased by around US$14/ton over the past week.” A PVC pipe manufacturer added, “Demand for our end products is picking up these days and the prices we received from the local market have increased by US$14/ton. Our suppliers have informed us that their stock levels are limited.”