PVC Market Stays Weak Due to Poor Demand and Supply Conditions

Key Takeaways

• China PVC Slips: SG-5 PVC averaged $655.48/ton, down 0.48%, as weak demand outweighed steady supply.
• Downstream Activity Soft: Low buyer interest and reduced operating rates kept transaction volumes muted across major markets.
• Trade Tensions Weigh on Asia: US–China friction continues to hurt confidence and slow regional spot trade momentum.
• Supply Events in Focus: Shutdowns and force majeures at key plants in China, France, and Germany added minor supply concerns.
• Short-Term Outlook Flat: With no strong recovery signs, prices are likely to remain range-bound amid macroeconomic headwinds.

Polymer Price: Minor Dip in PVC 

• According to the monitoring of the commodity market analysis system, the PVC spot market in China remained volatile within a narrow range. The average price of SG-5 PVC (carbide method) stood at 655.48 USD/ton, reflecting a weekly drop of 0.48%.
• Trading prices for PVC SG-5 electrical aggregate mostly ranged between 650–668 USD/ton.
• Upstream, the calcium carbide market showed a flat trend, with no significant price movement, continuing to offer limited cost support to PVC.
• In Asia, ongoing US-China trade tensions dampened market confidence, with a noticeable slowdown in the regional spot trading momentum.
• In Europe, demand remained weak, while in the US, export prices stayed largely flat due to tariff-related uncertainties.

Polymer Demand and Supply Dynamics

• The PVC market exhibited weak consolidation during the week, with several producers implementing slight price reductions (≈7 USD/ton) in response to dull fundamentals.
• Supply Side:
  Most manufacturers operated at stable rates, leading to no significant supply tightness. Dealer quotations remained soft as inventory levels stayed manageable.
• Demand Side:
  Downstream activity was subdued, marked by low operating rates and weak procurement interest. Buyers largely opted for spot-based purchases, and inquiry levels remained low.
  The market atmosphere was sluggish, with transactions driven mostly by basic demand.
• In the broader Asian market, sentiment was hurt by sluggish trade flows and reassessment of strategies by market players due to geopolitical uncertainty.

Polymer News: Maintenance Shutdowns in China, Force Majeure in Europe

• Tianjin Bohai has taken its polyvinyl chloride (PVC) plant in Tianjin, China offline for scheduled maintenance. The facility has an annual production capacity of 800,000 tons.
• Separately, Inovyn has declared force majeure on suspension PVC (S-PVC) supplies from its Tavaux, France plant, which has a production capacity of 295,000 tons per year.  
• In Germany, Vestolit/Orbia has extended its force majeure on PVC and vinyl chloride monomer (VCM) supplies from its Marl complex due to ongoing technical issues. The affected facilities have annual production capacities of 450,000 tons for PVC and 400,000 tons for VCM. 
• Meanwhile, Sanjiang Chemical has reduced operating rates at its monoethylene glycol (MEG) unit in Jiaxing, Zhejiang province. The unit has a total annual capacity of 1 million tons.  

Market Expectations: Prices May Remain Under Pressure

Given the unfavourable fundamentals, PVC prices are expected to continue in a narrow, range-bound pattern in the short term. The lack of substantial demand recovery and ongoing macroeconomic pressures, especially from global trade issues, may keep prices under pressure this week.