Imported PVC Market Weakens Amid Persistent Decline

Key Highlights:

• Price Trends: K67 PVC prices fell by ₹750–₹3000 across Mundra and Bhiwandi, reflecting weak market sentiment and abundant supply.
• Supply and Demand: Over 50% of PVC manufacturers run at full capacity, driving inventory buildup and bearish dealer quotations.
• Global News: China’s PVC exports dropped sharply in November, while Europe anticipates a better supply-demand balance for polystyrene over four years.
• Market Outlook: Analysts forecast continued weakness in PVC prices due to high inventories, subdued demand, and limited cost support from feedstocks.

Polymer Price Updates: Declining Trends Across Key Grades

• K67 PVC - OPC, S101 Grade (Mundra): Available at ₹76,250/MT (-3000), sourced from Mundra.
• K67 PVC - OPC, S101 Grade (Bhiwandi): Priced at ₹77,250/MT (-2000). 
• K67 PVC - ASNYL, FJ65R Grade (Mundra): Priced at ₹74,750/MT (-2000). 
• K67 PVC - ASNYL, FJ65R Grade (Bhiwandi): Available at ₹75,250/MT (-1000), showing a slight price increase for Bhiwandi.
• K67 PVC - YANGMEI, HT1000 Grade (Mundra): Priced at ₹73,750/MT (-750).  
• K67 PVC - YANGMEI, HT1000 Grade (Bhiwandi): Offered at ₹74,250/MT (-2000).

Oversupply and Weak Demand Continue to Pressure PVC Market

Since December, PVC prices have been on a consistent downward trend due to a lack of strong positive drivers in the market.

• The operating rate of PVC manufacturers has significantly increased over the past two months, with over 50% running at full capacity.
• This has resulted in ample supply, leading to mounting inventory levels at both enterprise and market levels.
• Dealer quotations steadily decline under supply-side pressure, contributing to a bearish market sentiment.
• Downstream procurement activity remains subdued, with buyers primarily purchasing spot quantities.
• Enthusiasm for inquiry-based procurement is low, reflecting a sluggish market atmosphere and limited immediate demand.
• Trading remains focused on basic requirements, resulting in an average market activity.
• The decline in crude oil prices has weakened ethylene performance, reducing cost support for PVC production.
• Calcium carbide, a key feedstock, has also seen price declines, dropping by 0.58% last week. The downward trend is attributed to weak market support and the sluggish downstream PVC market.

Polymer News: Global Polymer Developments and Market Shifts

• HPL has declared CCS linked ‘XYZ’ Incentive scheme amount of PP and PE for the month of December.
• Polymer grade Propylene Prices opened stable at EURO 830/MT FD North West Europe.
• Zhejiang Petroleum & Chemical (ZPC) has restarted its No.4 Styrene Monomer (SM) Plant after maintenance work. The Plant is located in Zhejiang, China with a production capacity of 600,000 Tons/Year.
• The European polystyrene market is expected to see an improved supply-demand balance in the next four years, as domestic demand has declined by an average annual rate of 2.6% since 2018.
• Mainland China’s November PVC exports fall, Concerns over possible antidumping duty in India.
• China’s November styrene imports, and exports fall - China’s exports tumbled to 403 metric tons in November, from 857 metric tons in October.

Expert Opinion: PVC Market Outlook Remains Subdued

• Analysts predict a slight surplus in PVC supply over demand in the near term.
• High operating rates are expected to maintain elevated inventory levels, with limited cost support from upstream materials like calcium carbide.
• The PVC futures market continues to display weak performance, further dampening confidence in the spot market.
• In the short term, the PVC market is anticipated to remain weak and volatile, with closely monitored developments in market news and fundamentals.