Asian players respond to Brexit vote
A producer in Thailand commented, “Demand has been weakening due to the rainy season. Moreover, UK’s decision to leave the EU affected particularly export markets.” He thinks that the upward sentiment may not be as strong as the previous weeks since the retail market is still slow. Therefore, they prefer to wait and see until obtaining a clearer picture of the market.
A trader in Vietnam said that players are sourcing cautiously following UK’s exit from the EU. He believes that the upward momentum will not be sustainable as demand from Europe is not quite strong and market players will stay on the sidelines due to Brexit’s impact and uncertainties. A shopping bag manufacturer in Vietnam also reported that they take a wait and see position on the back of lower crude oil following the Brexit news.
Meanwhile, a PVC producer in China reported that they have not seen any impact of Brexit so far; “however expectations are calling for a softer demand in Europe after some time,” he said. A trader made a similar comment saying, “The stock market turned bearish but it pared its losses later on. Although people continue to buy on a needs only basis, local and import prices have still been on a firm note.” A second trader attributed the price increases recorded throughout the past two weeks to the significant increases in future prices as well as reduced stocks both in the import and local markets.
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