PVC Market Struggles Amid Weak Demand, High Supply, and Limited Cost Support

Key Highlights

• PVC prices in India show regional variations, with DAGU S PVC K67 at ₹73,000/MT in Chennai and OXYVINYL PVC K67 at ₹72,250/MT in Mundra.
• Bearish trend persists due to weak demand and supply surplus.
• Anti-dumping investigation hearing on PVC imports rescheduled to January 15, 2025.
• Weak PVC futures dampen spot market confidence.

PVC Market Update: Regional Pricing Trends

• DAGU S PVC K67 (DG1000S) Ready Material in Chennai Rs. 73,000/MT
• OXYVINYL PVC K67 (P225) Ready Material in Mundra Rs. 72,250/MT
• PVC Low K (DG700) Rs 79 Ex Nhava Sheva/Mundra 
• PVC Low K (B57) Rs 82.75 Ex Nhava Sheva/Mundra
• PVC LG LS100H  Rs 76.75 Ex Mundra/Bhiwandi

PVC Market Overview: Bearish Sentiment and Supply Surplus

• The PVC spot market continued to face a bearish trend in December, influenced by weak upstream crude oil and ethylene prices. 
• Pressure from the futures market contributed to the ongoing downward trajectory.
• Supply and demand imbalances persisted, with no significant rebound trend observed.
• Operating rates remain high, leading to increased production and a slight supply surplus.
• Downstream procurement focused on spot prices, with limited enthusiasm for inquiry-based buying, contributing to a sluggish market atmosphere.  
• Trading activity was primarily driven by basic needs, with average market participation.  

Global and Domestic News Updates: Key Developments Impacting Pricing

• Shanghai SECCO Petrochemical has kept its Acrylonitrile (ACN) weekly Prices stable at CNY 10,000/MT in China, ex-tank basis, stable from the previous week.
• Ineos is restarting its PTA Unit after maintenance work. The Unit is located in Zhuhai, China.
• The Directorate General of Trade Remedies (DGTR) has rescheduled the oral hearing of the Anti-dumping Investigation concerning imports of ‘PVC Suspension Resins’ originating in or exported from China PR, Indonesia, Japan, Korea RP, Taiwan, Thailand and the United States to January 15, 2025, at 03:00 PM. 
• PP Updates: Intl. Markets assessed as soft amid lower demand. New capacities are coming in China which will put further pressure on Prices and margins. 
• Open market Prices in India are stable and market players are anticipating new Sale Schemes/discounts.
• HDPE/LLD Updates: Intl. Markets assessed as soft amid lower Import demand from China and India amid depreciating Currencies. 
• HM and LLD deals done at 900$ for India Market. Domestic demand in India is good due to upcoming shutdowns and Processors started building inventory.

Expert Opinion: Weak Spot Market and Cautious Outlook

• The weak performance of the PVC futures market continues to dampen confidence in the spot market. Combined with the approaching holiday season, the market atmosphere remains subdued. 
• The PVC spot market is anticipated to remain weak and volatile in January 2025, with no clear signs of bottoming out or stabilization. Continuous monitoring of market developments and news updates is recommended to assess potential changes.