This week, PVC prices down adjusted in the Asian region.
An industry source in Asia on condition of anonymity informed a Polymerupdate team member, “Crude oil prices trended lower with halting of crude oil production and exports from Libya perceived by market participants to be a short term disruption rather than a long term interruption. Mounting concerns over softening demand for energy commodities further exerted a bearish pressure on prices.”
The source added, “Prices also dropped as a major Taiwanese PVC producer lowered its offer for September shipment.”
In China, PVC prices were assessed at the USD 740-780/mt CFR levels, a week on week decrease of USD (-20/-40/mt).
In China, a Taiwanese producer offered its PVC resin suspension grade at the USD 780/mt levels, for shipment in September 2024.
In China, spot market availability could impact market sentiment in a bearish manner. A few producers announced price cuts to bolster sales and offload their unsold inventories, particularly in export markets in hopes of better netbacks as material offtake had lessened domestically. Market participants noted that the market sentiments in China are passing through a bearish phase, as reflected in decreasing domestic PVC prices, with the likely probability of PVC cargoes being imported into the country at reduced price levels. Prospects of stimulus policies rolled out for the Chinese realty sector led to a rally in PVC futures earlier in the week. However, the underlying weakness in downstream demand meant that the rally could not sustain with PVC futures declining to values seen towards the start of the week.
In Southeast Asia, PVC prices were assessed at the USD 750-805/mt CFR levels, a fall of USD (-20/-25/mt) from the previous week.
In Vietnam, a major producer from Taiwan offered its PVC resin suspension grade at the USD 805/mt levels, for shipment in September 2024.
In Southeast Asia, excess material avails from China and a seasonal lull continued to weigh on market sentiments. Supply factors remained dominant triggers in influencing transaction decisions of buyers in few Southeast Asian countries like Malaysia and Thailand in spite of experiencing expedited GDP growth momentum. Restocking activity was done in a scattered manner at lower price levels week on week, even as a few producers adjusted their offers to induce buying in a decelerated market environment.
In India, PVC prices were assessed at the USD 780-800/mt CFR levels, a week on week decline of USD (-10/mt).
In India, a major Taiwanese producer offered its PVC resin suspension grade at the USD 800/mt levels, for shipment in September 2024 (LC at sight). These offers are lower by USD 110/mt from last month's price level.
A producer from South Korea also offered PVC suspension grade at the USD 810-800/mt levels for shipment in September 2024, while a producer from Thailand has offered its PVC resin suspension grade at the USD 790/mt levels for shipment in September 2024.
In India, spot negotiations for September shipments had slowed down as market players largely remained on the sidelines while awaiting clarity on the extension of the BIS certification mandate for PVC imports which was scheduled to expire towards end August, with sellers also desisting from announcing fresh offers in India. Spot negotiations are likely to pick up again following the Government of India announcing an extension of the BIS mandate till December 24, 2024.
In Pakistan, PVC prices were assessed at the USD 780-820/mt CFR levels, a plunge of USD (-10/mt) from last week.
In Pakistan, overseas suppliers have offered their PVC resin suspension grades in the range of USD 780-820/mt levels, for shipment in September 2024.
In Pakistan, prices dropped owing to healthy availability and lower offers from suppliers. Spot trade slowed with some buyers holding off purchases due to the recent price volatility.
In Sri Lanka, PVC prices were assessed at the USD 810-820/mt CFR levels, a week on week tumble of USD (-50/mt).
In Sri Lanka, a producer from South Korea also offered PVC suspension grade at the USD 810/mt levels for shipment in September 2024.
In Bangladesh, PVC prices were assessed at the USD 820-860/mt CFR levels, a fall of USD (-30/mt) from the previous week.
In Bangladesh, a producers from Taiwan have offered PVC suspension grades in the range of USD 820-860/mt levels for shipment in September 2024.
In Bangladesh, PVC import discussions remain muted with market participants continuing to remain on the sidelines amid lower offers from overseas producers. Meanwhile, the country is experiencing a gradual easing of political tensions.
On Friday, feedstock EDC prices were assessed at the USD 295-305/mt CFR China levels while CFR South East Asia EDC prices were assessed at the USD 325-335/mt levels, both rolled over week on week.
CFR China VCM prices were assessed flat at the USD 605-615/mt levels, while CFR South East Asia VCM prices were also assessed steady at the USD 695-705/mt levels.
Feedstock ethylene CFR South East Asia ethylene prices were assessed at the USD 975-985/mt levels, while CFR North East Asia prices were assessed at the USD 875-885/mt levels, unchanged from the previous week.
In plant news, LG Chem is likely to take off stream its Vinyl chloride monomer (VCM) unit for maintenance in end October 2024. Further details on the duration of the shutdown could not be ascertained. Located in Yeosu, South Korea, the VCM unit has a production capacity of 360,000 mt/year.
In other plant news, Sulfindo Adiusaha is likely to take off stream its Ethylene dichloride (EDC) unit for maintenance in September 2024. The exact date and duration of the shutdown could not be ascertained. Located in Bojonegara, Indonesia, the EDC unit has a production capacity of 370,000 mt/year.
