Local PVC producer in Indonesia slashed April prices amid weak demand

It is reported that a major local producer in Indonesia has announced April delivery offers for PVC with $50/ton reduction from last month, sending the latest offers to $930-950/ton without VAT, FD Indonesia, cash term. 

The producer initially expressed the unwillingness to follow the large reduction observed in the import ground, citing the lack of inventories pressure due to the recent maintenance shutdown.

“However, demand is very weak here. Pipe manufacturers are unable to deplete end product inventories given the lack of project ahead of the General Election. The near term outlook is not very strong either as the fasting month is approaching,” a source close to the producer said.

Several local traders have reported a similar situation complaining that buyers are not interested in making fresh purchases even with additional discount. “We prefer to wait for the election result before making new purchases. It is too risky at the moment,” a pipe maker said.