Steady Production and High Inventory Weigh on PVC Market Recovery

Low K (P700) Rs 83.75 Ex Nhava Sheva/Mundra. Low K (B57) Rs 87.75 Ex Nhava Sheva/Mundra. LG LS100H Rs 77 Ex Mundra/Bhiwandi. The PVC market is currently facing a supply-demand imbalance in the Asian subcontinent. In China, production rates have increased, with the overall operating rate of PVC production enterprises rising by 0.78% month-on-month and 1.99% year-on-year to 79.32%.

Polymer Price

  • PP Raffia (±0) Rs 93/kg levels Ex Godown.
  • PP Film (±0) Rs 101/kg levels Ex Godown.
  • PPCP (±0) Rs 99.50/kg levels Ex Godown.
  • PP Lamination (±0) Rs 105/kg levels Ex Godown.
  • LLDPE (±0) Rs 87.5/kg Ex Mundra/Bhiwandi.
  • LDPE prices are around (±0) Rs 116/kg Ex Mundra/Bhiwandi.
  • HDPE PE100 natural (±0) Rs 90/kg Ex Mundra/Bhiwandi.
  • HDPE PE100 black (±0) Rs 91/kg Ex Mundra/Bhiwandi.
  • HDPE HM (±0) Rs 90/kg Ex Mundra/Bhiwandi.
  • HD Blow Molding (±0) Rs 91/kg Ex Mundra/Bhiwandi.
  • Low K (P700) Rs 83.75 Ex Nhava Sheva/Mundra.
  • Low K (B57) Rs 87.75 Ex Nhava Sheva/Mundra.
  • LG LS100H Rs 77 Ex Mundra/Bhiwandi.

Polymer Demand and Supply

  • The PVC market is currently facing a supply-demand imbalance in the Asian subcontinent. In China, production rates have increased, with the overall operating rate of PVC production enterprises rising by 0.78% month-on-month and 1.99% year-on-year to 79.32%.
  • Specifically, the carbide method saw a 0.19% increase month-on-month, while the ethylene method grew by 2.45%. Despite higher production, inventory levels remain high, with the domestic social inventory at 492,000 tons as of September 19th, a 15.11% year-on-year increase.
  • Also, downstream procurement remains weak, as domestic product enterprises are focused on essential purchases without significant improvement, even as the peak season (Jinjiu) progresses.[

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Polymer News

  • Formosa Petrochemical Corp (FPCC) has restarted its No.1 Cracker after maintenance work. The cracker is located in Mailiao, Taiwan.
  • PVC prices in Europe closed stable at €880/MT FD NWE basis.
  • LLDPE Film prices closed stable at €1130/MT FD NWE basis.
  • Yesterday, Brent crude oil prices closed higher at $78.05 USD/bbl level.

Expert Opinion

Prices were assessed flat on account of a steady purchase pulse in the Asian region. The market's overall transaction performance is lackluster, and despite a rebound in prices in late September, the supply-demand contradiction continues to persist.

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