Polyvinyl chloride (PVC) prices fall in Asia

PVC prices dropped in Asia this week.

An industry source in Asia wishing to remain unidentified informed a Polymerupdate team member, "Lower import offers from overseas suppliers coupled with weak regional demand trends supported the price fall.”

In China, PVC prices were assessed at the USD 840-886/mt CFR levels, a drop of USD (-10/mt) from last week. PVC prices in China fell due to poor demand sentiments and constrained export trades. PVC futures in China registered a strong decline last week primarily on the back of a fall in export deals, but posted a slight recovery later in the week as the Chinese government reduced the reserve requirement ratio on September 14 to ease credit availability and boost consumer spending.

In China, a producer from Taiwan is heard to have announced its offer for PVC resin suspension grade at the USD 845/MT levels for shipment in October 2023.

In Southeast Asia, PVC prices were assessed at the USD 840-870/mt CFR levels, down USD (-20/mt) from the previous week. Demand outlook in Southeast Asia remained weak with converters in the region disinclined towards import transactions which, in turn, prompted them to lower their operational rates. Meanwhile, it has been noted that a few manufacturers had distanced themselves from export markets as they anticipated a fall in netbacks from key export destinations such as South Asia.

In Southeast Asia, a producer from Taiwan is heard to have offered its PVC resin suspension grade at the USD 840/MT levels for shipment in October 2023.

In Pakistan, PVC prices were assessed at the USD 830-860/mt CFR levels, a drop of USD (-10/mt) from previous week.

In Sri Lanka, PVC prices were assessed at the USD 850-870/mt CFR levels, a week on week decline of USD (-20/mt).

In Bangladesh, PVC prices were assessed at the USD 835-845/mt CFR levels, a fall of USD (-5/mt) from last week.

In India, PVC prices were assessed at the USD 830-870/mt CFR levels, unchanged week on week.

In India, offers prices remained stable despite lower import offers though buyers refrained from conducting transactions at these levels.

In India, a major Taiwanese producer has offered its PVC resin suspension grade at the USD 870/mt levels for shipment in October 2023 (LC at sight).This offer is lower by USD 30/mt from its previous offer.

A producer from Japan offered its PVC resin suspension grade at the USD 890-900/mt levels for shipment in October 2023, which would be equivalent to USD 820-830/mt levels after accounting for import duty.

A domestic industry source informed a Polymerupdate team member, “In the open market of India, Reliance Industries Limited has announced a price protection in PVC wef September 15, 2023, till the month-end or the next price change, whichever is earlier.”

Feedstock EDC prices were assessed at the USD 260-270/mt CFR China levels, while CFR South East Asia EDC prices were assessed at the USD 285-295/mt levels, both unchnaged from the previous week.

CFR China VCM prices were assessed at the USD 695-705/mt levels and CFR South East Asia VCM prices were assessed at the USD 725-735/mt levels, stable from last week.

Feedstock ethylene prices on Tuesday were assessed at the USD 835-845/mt CFR North East Asia levels, a week on week rise of USD (+15/mt), while CFR South East Asia ethylene prices were assessed stable at the USD 860-870/mt levels.

In plant News, Erdos is likely to shut its Polyvinyl chloride (PVC) plant for maintenance in October 2023. The exact date and duration of the shutdown could not be ascertained. Located in China, the carbide-based PVC plant has production capacity of 800,000 mt/year.

In other plant News, Guangxi Huayi is likely to shut its Polyvinyl chloride (PVC) unit on November 1, 2023 for maintenance. The unit is expected to remain offline for about three weeks. Located in China, the ethylene-based PVC unit has production capacity of 400,000 mt/year.