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.
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