PVC Market Outlook: Stability Amid Weak Demand and Anti-Dumping Investigation

Key Takeaways

• Global PVC Prices: PVC prices steady globally, ranging from USD 635-975 per ton in Asia, the US, and Europe.
• India's Domestic Market: PVC Suspension priced at INR 72-75/kg in major cities, with no significant changes.
• Anti-Dumping Investigation: India's DGTR investigates PVC paste resin imports from the EU and Japan for potential anti-dumping duties.
• Market Factors: Fluctuating crude oil prices and stable calcium carbide costs prevent significant PVC price declines.
• Weak Demand Ahead: Demand expected to weaken as Chinese New Year approaches, slowing market activity.

Polymer Prices: Global PVC Prices Hold Steady Amid Regional Variations

• The global market for Polyvinyl Chloride (PVC) showed varying prices across regions. 
• In Taiwan, PVC was priced at USD 680-690/ton FOB, while the United States had PVC at 50-55 cents/lb. 
• In Europe, PVC prices ranged from EUR 965/ton in Netherlands and France to EUR 975/ton in Italy. 
• In Asia, PVC was priced at USD 720/ton CFR for the broader region and USD 730/ton CFR for Southeast Asia. PVC prices in Tianjin, China were between USD 635-650/ton FOB. 
• Domestic prices in India also varied, with PVC Suspension priced at 72-75 INR/kg in major cities like Jaipur, Mumbai, Chennai, and Kolkata. Despite fluctuations, PVC prices remained steady across these regions.

Demand & Supply: PVC Market Stable Amid Mixed Influences

• In the last week of January 2025, the polyvinyl chloride (PVC) market in Asia and the United States remained stable despite mixed influencing factors. 
• In Asia, PVC prices experienced slight fluctuations, initially rising as some manufacturers increased quotations due to minor gains in the futures market.
• However, crude oil price volatility impacted sentiment, leading to price stabilization towards the end of the week. The supply side remained steady, with no significant pressure as manufacturers continued stable operations. 
• However, demand weakened as downstream industries reduced procurement activity ahead of the Chinese New Year, leading to a sluggish spot market.
• Upstream, calcium carbide prices remained stable throughout January, providing some cost support and preventing sharper PVC price declines. However, resistance to high-priced materials and a cautious approach from buyers limited any upward momentum.
• In the United States, PVC prices also held steady, despite ethylene price increases and a rise in WTI crude oil futures to USD 73.5-75 per barrel. Severe winter weather disruptions along the Gulf Coast impacted logistics, causing port closures in the USA. 

Polymer News: India Probes PVC Dumping Amid Market Uncertainty

• India's Directorate General of Trade Remedies (DGTR) has launched an anti-dumping investigation into PVC paste resin imports from the EU and Japan, following a complaint by Chemplast Sanmar Ltd. 
• The investigation will assess if cheap imports harm domestic manufacturers. If proven, DGTR may recommend anti-dumping duties, with the finance ministry making the final decision. This follows previous anti-dumping duties on PVC paste resin imports from six countries, including China.
• Market factors impacting PVC prices include fluctuating crude oil prices, stable calcium carbide costs, weak demand due to the Chinese New Year, logistics disruptions in the U.S., and uncertainty from Trump's proposed tariffs on metals.

Expert Opinion: PVC Prices Steady Amid Weak Demand, ADD Uncertainty 

• PVC prices are expected to remain range-bound, with limited upside potential due to weak downstream demand. Market activity will likely slow down further as the Chinese New Year holiday approaches. Stable calcium carbide prices will help prevent major price declines. 
• The anti-dumping investigation will add uncertainty to the market, with potential duties influencing future import trends. If duties are imposed, domestic producers could gain market protection, impacting overall supply dynamics.