Chinese PVC Market Softens Amid Weak Demand and Stable Supply

Key Highlights: 

• Chinese, Indonesian, Japanese, American, and Korean PVC suppliers maintain competitive pricing, with South Korean LG LS100 reaching the highest price of ₹70,000/MT.
• A decline in Chinese PVC prices and sluggish transactions highlight a cautious trading environment, with future stability hinging on economic policies and seasonal demand.
• Major producers, including Formosa, Suzhou Huasu, Anwil, and Shintech, announced planned shutdowns and restarts, impacting global supply availability.
• Weak downstream demand and sufficient supply pressure prices downward, while economic uncertainties and fluctuating energy costs influence buyer strategies.

PVC Price Trends: Regional Variations Across Global Suppliers

• The PVC K67 market (Ex-Mundra, INR/MT) observed price variations across different suppliers and origins. Chinese brands, including Xinfa, Hygain, and Sinopec, were priced at ₹67,000-67,500/MT, reflecting competitive pricing. 
• Indonesian (Ansyl), Japanese (ShinEtsu), and American (Oxyvinyl, Westlake) suppliers maintained similar rates at ₹67,500/MT. 
• Taiwanese (CGPC, Formosa) and Korean (Hanwa, LG LS100H) brands were positioned at a higher range of ₹69,500/MT, while LG LS100 from South Korea recorded the highest price at ₹70,000/MT. 

Market Dynamics: Supply Stability Amid Weak Demand

• Over the past week, the Chinese PVC market experienced weak performance, marked by a price decline of 2.5-4.5 USD/ton. This downward trend was driven by subdued market sentiment and limited inquiries, leading to moderate transaction volumes. 
• The mainstream price for calcium carbide method type 5 PVC was recorded in the range of 670-685 USD/ton. Despite weak demand, supply levels remained stable, contributing to a cautious and hesitant trading environment.
• Moving forward, industry experts suggest that any potential uptick in demand or supply-side adjustments could bring stability or recovery in the short term. However, sustained improvement will depend on economic policies and seasonal demand trends in key sectors.

Global PVC Market Updates: Production Resumptions & Shutdowns

• Formosa from Taiwan offered their PVC (S65D, S65, S60, S70) at US$ 700/- Per MT, S57 at US$ 710/MT, B57 at US$ 720/MTCIF Nhava Sheva/Mundra/Chennai port, US$ 700/- Per MT CIF China and US$ 600/- Per MT FOB Taiwan for April 2025 shipment.
• Suzhou Huasu is planning to restart its Polyvinyl Chloride (PVC) Unit in mid-March, 2025 after maintenance work. The Unit is located in Suzhou, Jiangsu, China with a production capacity of 130,000 Tons/Year.
• Anwil is planning to restart its Polyvinyl Chloride (PVC) Plant in H2 March 2025, which was shut in February, 2025. The Plant is located in Wloclawek, Poland with a production capacity of 340,000 Tons/Year.
• Shintech is planning to shut down its Polyvinyl Chloride (PVC) Plant in March, 2025 for maintenance work until April, 2025. The Plant is located in Texas, USA with a production capacity of 1.465 Million Tons/Year.

Industry Outlook: Price Trends & Market Sentiment

Market analysts attribute the recent price drop to sluggish downstream demand, coupled with ample supply in the domestic market. Buyers remain on the sidelines, anticipating further price adjustments before making procurement decisions. Additionally, global economic uncertainties and fluctuating energy prices continue to weigh on investor sentiment.