Market and Supply Update 7th April 2020

Rodrigo Duterte, the president of the Philippines, has announced an extension of enhanced community quarantine, to the 30th April in Luzon and other areas are expected to also extend their lockdowns.

Primex has made modifications to all our factories to enforce social distancing as mandated by quarantine laws.

As mentioned, it is Holy Week this week in the Philippines and many of Primex’s factories as closed as usual.

Currently only Primex’s Coco Davao factory is open and working, and they will also shut down on Thursday, April 9 till the 13th due to Easter holidays.

The Easter Closure also affects the Bureau of Customs at Ports in the Philippines, so no shipments are due to go out over the weekend, as expected.

Primex is planning to operate, Coco Davao and Prime Xynergies at a lower reduced capacity, starting the 15th of April after the Easter holidays end.

Pricing

We are beginning to see an increase in pricing from the Philippines, and while this may go against market trends in for edible oils, the reasoning is clear, that the reduction in production is affecting business and therefore they need to cover fixed costs.