PVC Prices Extend Decline Amid Weak Demand, High Supply in April 2025

Key Highlights

1. Widening Price Gap: Chinese PVC is available at ₹63,900/MT, while Korean and Taiwanese grades touch ₹68,250/MT.
2. High Inventories: Supply surplus continues due to elevated production and weak offtake.
3. Futures Market Pressure: Persistent weakness in futures dragging spot sentiment lower.
4. No External Support: Crude, ethylene, and calcium carbide trends offer little to no cost push.

PVC Asian Market Price: Origin-Wise Market Differentiation

• At Mundra location, the imported PVC K67 prices vary by supplier and origin. Ansyl’s FJ65R from Indonesia is priced at Rs. 66,250/MT, while Xinfa’s SG5 from China is offered at a lower rate of Rs. 63,900/MT. 
• Taiwanese suppliers CGPC (H66) and Formosa (S65D) are both quoting Rs. 68,250/MT. From Korea, Hanwa’s P1000SB is also priced at Rs. 68,250/MT. Another Chinese brand, Hygain (HS1000R), is available at Rs. 66,250/MT. 
• By April 30, the average PVC price stood at 647 USD/ton, marking a 4.70% decline month-on-month. 
• Despite some stabilization in the latter half of the month, no significant rebound was observed.

PVC Demand and Supply: Persistent Surplus, Passive Buying

• Production & Operating Rates: Operating rates stayed high across manufacturers, and production continued to climb, creating a slight supply surplus in the market.
• Downstream Activity: Buyers operated cautiously with low enthusiasm for procurement, primarily sourcing based on immediate needs rather than speculative or inquiry-based orders.
• Market Sentiment: The overall market atmosphere remained sluggish, with low order prices prevailing and a noticeable lack of buying momentum.
• Inventory Pressure: Inventories remained elevated at both producer and market levels, adding to the supply-side burden and keeping prices under sustained downward pressure.

Polymer News: Weak Fundamentals, No Trigger Points

• Futures Influence: The PVC futures market showed weak performance, weighing heavily on market sentiment and reinforcing bearish expectations in the spot market.
• Cost Components: Although calcium carbide prices rose earlier in April (+5.1% since March), the trend stabilized mid-month. The lack of sustained upward momentum in calcium carbide prices limited its ability to provide meaningful cost support for PVC.
• Crude Oil & Ethylene: Both remained weak, undermining the overall cost structure and contributing to bearish PVC pricing.
• Lack of External Stimuli: There were no substantial macroeconomic or policy announcements to lift demand or pricing.

Ēxpert Opinion: Near-Term Outlook Remains Bearish

Given the persistently high operating rates, surplus inventory, weak cost support, and subdued downstream demand, the PVC spot market is expected to remain weak and volatile in May 2025. Industry participants should monitor for any major economic or policy developments that might alter current trends.