Local PVC prices firmed up in Indonesia

Market players in Indonesia reported this week receiving higher PVC prices from major local producers despite demand from the PVC pipe sector is reported to be sluggish. On an average, the latest offers indicated some $40/ton increased compared to earlier this month.

A converter received offers from two different local makers at $900/ton and $920/ton respectively, all based on FD Indonesia, cash term. The source said, “Domestic market gains support from firming international trend in spite of slow buying interest. Demand for our end product is so weak that we have been operating at 50% rate for sometime now. We plan to source on need basis till end product business improve.”

Another converter added, “Local market is firming up, however, demand is just not supportive enough. We have been operating at 60% capacity for almost a year now, and near term outlook for end product business is just too cloudy.”

Domestic offers for PVC in Indonesia is currently reported at $900-920/ton FD, cash term.