PVC Market Gains Momentum in Asia Amid Freight Constraints

Key Highlights

• DAGU PVC K57 priced at ₹70,000/MT (Mundra) and ₹70,500/MT (Bhiwandi); LG & FORMOSA K67 ranged from ₹70,250–71,500/MT across regions.
• XINFA K67 SG5 was the lowest, from ₹66,750/MT (Mundra) to ₹67,250/MT (Bhiwandi); Chennai quoted at ₹67,000/MT.
• PVC prices rose 3% this week, supported by bulk buying and limited vessel space, especially for June shipments.
• Shin-Etsu’s 450,000 TPA PVC plant in the Netherlands restarted, while US tariff delays prompted Asian producers to front-load exports, tightening freight availability.

Price Overview: Asian PVC Prices Up 3% on Bulk Buying, Tariff Grace Period

• DAGU PVC K57 (DG700) was priced at ₹70,000/MT in Mundra and ₹70,500/MT in Bhiwandi, reflecting a ₹500 premium in the western inland hub. 
• FORMOSA PVC K67 COMPOUNDED (S65D) was available at ₹70,250/MT in Mundra, aligning with LG PVC K67 COMPOUNDED (LS100H) in Bhiwandi, while the same LG grade was higher at ₹71,500/MT in Chennai, indicating regional pricing differences.
• XINFA PVC K67 (SG5) offered the most competitive rates, starting at ₹66,750/MT in Mundra, ₹67,250/MT in Bhiwandi, and ₹67,000/MT in Chennai
• Asian Spot PVC prices saw a modest rebound, supported by increased market activity and positive futures sentiment. The fall in calcium carbide prices, a key feedstock, offered marginal cost relief.

Demand and Supply: Freight Squeeze and Export Surge Tighten Asian Resin Supply

• Asian Trading volumes picked up notably, with lower inventories and firm output rates indicating healthier demand. The reversal of the downtrend that began in May is being attributed to better downstream buying interest and active market participation. 
• Logistics: Intra-regional logistics have become a concern. Asian producers are ramping up exports to the US before the 90-day tariff grace period ends, leading to higher freight rates and reduced vessel availability, which is pushing Asian-origin resin prices higher.
• PVC prices rose by 3% this week, driven by bulk buying activity and tight freight capacity, particularly on export routes. Despite the price uptick, demand remains selective and largely shipment-focused, with most buying centered around June-loading cargoes.
• Market sentiment is cautiously optimistic, but actual transactions are still being guided by logistical feasibility and short-term procurement needs.

News and Developments

• Shin-Etsu has restarted its Polyvinyl chloride (PVC) Plant after planned maintenance work. The Plant is located in Permis, Netherlands with a production capacity of 450,000 Tons/Year.
• Tariff Delay between US and China: The recent postponement of tariffs brought temporary relief to US exporters and improved global market confidence.
• Export Shift and Logistics Pressure: As Asian producers redirect volumes to the US, freight costs have surged, and space constraints are emerging, adding a layer of logistical complexity.

Market Expectation: Optimistic PVC Outlook in the US and Asia

• The near-term outlook for PVC is cautiously optimistic in the US and Asia, driven by improved sentiment and supply control. However, Europe is expected to remain under pressure from weak demand, cost-side misalignment, and import competition. Price gains may not sustain unless a broader structural demand recovery takes place globally.