Asian PVC Prices Decline Amid Weak Demand and Increased Supply
Low K (P700/TH700): (+0.5) Rs. 82.00 Ex Nhava Sheva/Mundra. LG LS100H: (-0.25) Rs. 75.50 Ex Mundra/Bhiwandi. PVC prices have been adjusted downward in the Asian region. In China, increased spot market availability may negatively impact market sentiment.
Price
- PP Raffia: (±0) Rs.94/kg Ex Godown.
- PP Film: Rs.100/kg Ex Godown.
- PP CP: (±0) Rs.99.75/kg Ex Godown.
- PP Lamination: (±0) Rs.104.25/kg Ex Godown.
- LLDPE: (-0.5) Rs.86/kg Ex Mundra/Bhiwandi.
- LDPE: (±0) Rs.118/kg Ex Mundra/Bhiwandi.
- HDPE PE100 Natural: (-1) Rs.91/kg Ex Mundra/Bhiwandi.
- HDPE PE100 Black: (±0) Rs.93/kg Ex Mundra/Bhiwandi.
- HDPE HM: (±0) Rs.92/kg Ex Mundra/Bhiwandi.
- HD Blow Molding: (±0) Rs.91/kg Ex Mundra/Bhiwandi.
- Low K (P700/TH700): (+0.5) Rs.82/kg Ex Nhava Sheva/Mundra.
- LG LS100H: (-0.25) Rs.75.5/kg Ex Mundra/Bhiwandi.
Demand and Suppl
- PVC prices have been adjusted downward in the Asian region. In China, increased spot market availability may negatively impact market sentiment.
- Some producers have announced price cuts to boost sales and clear unsold inventories, particularly in export markets, hoping for better netbacks as domestic offtake has declined.
- Market participants noted a bearish phase in China, reflected by falling domestic PVC prices, with the potential for imported PVC cargoes to enter the market at lower prices.
- Although stimulus policies in China's realty sector initially boosted PVC futures, the rally was unsustainable due to underlying weak downstream demand, causing futures to fall back to earlier levels.
News
- Zhejiang Petroleum & Chemical (ZPC) has shut down its No.1 Methyl Methacrylate (MMA) Unit located in Zhoushan, Zhejiang, China.
- Zhongjing Petrochemical has shut down its No.1 and No.2 Polypropylene (PP) Lines on 28th August 2024, for maintenance. The lines are located in Fuqing, China.
- Braskem declared Force Majeure (FM) on Polypropylene (PP) supplies from its plant on 28th August 2024, due to significant mechanical damage to its Polypropylene melt pump.
- The plant is located in Schkopau, Germany, with a production capacity of 325,000 tons/year. The company will experience delays in delivering some grades and will not be able to supply the full contractual volume.
Expert Opinion
- PVC import discussions remain muted, with market participants staying on the sidelines amid lower offers from overseas producers. Meanwhile, the country is experiencing a gradual easing of political tensions.