This week, PVC prices gained in the Asian region.
An industry source in Asia wishing to remain unidentified informed a Polymerupdate team member, "OPEC+ alliance plans to wind down voluntary output cuts totalling 2.2 million barrels per day from October 2024 till September 2025, which could lead to excess oil supplies flooding the market, pressuring prices lower. Meanwhile, suppliers have pointed out that even though petrochemical derivative prices have been experiencing significant hikes in recent times owing to spikes in freight rates, the sustained decline in crude oil prices over the last few trading sessions has narrowed the delta and boosted confidence among market players. Furthermore, market participants are closely monitoring the current market developments.”
In China, PVC prices were assessed at the USD 800-810/mt CFR levels, a week on week increase of USD (+10/mt). Domestic market conditions in China witnessed a steady improvement on the back of stimulus measures rolled out by the government. However, replenishment activity was largely constrained with most buyers opting to remain on the sidelines owing to volatile freight rates. The bearish sentiment was shared by a few other market players who did not believe that the bullish sentiment would persevere given that the country’s PMI data for May had shrunk.
While export trade talks had slowed down on the back of rising freight rates, there was minimal transaction activity in the region with market players pointing to a narrow arbitrage window. Nevertheless, rising prices in the domestic Chinese market prompted sellers to raise their offers.
In China, overseas suppliers have offered their PVC resin Suspension grades in the range of USD 800-810/mt levels for shipment in June/July 2024.
In Southeast Asia, PVC prices were assessed at the USD 810-830/mt CFR levels, a rise of USD (+20/mt) from the previous week. Prices climbed owing to spikes in ocean freight costs across the Asia-Pacific region. A few buyers who were under pressure to replenish their inventories transacted at higher levels as against the previous week. Meanwhile, demand from converters witnessed a declining trend throughout the week, chiefly owing to a sluggish construction sector disincentivizing the purchase of extra PVC material at higher prices. Demand had also weakened with most of the converters believing that their supply needs had sufficiently been taken care of by domestic PVC producers. Lower demand across the continent also helped to cap the rise in PVC prices to a certain extent.
In Vietnam, overseas suppliers have offered their PVC resin Suspension grades in the range of USD 810-830/mt levels for shipment in June/July 2024.
In India, PVC prices were assessed at the USD 900-930/mt CFR levels, a sharp week on week increase of USD (+40/mt). In India, prices gained amid the surfacing of offers in an intermittent manner which did not draw the requisite response from buyers. The paucity of container shipping space raising the prospects of delayed import cargo arrivals continued to keep Indian customers on tenterhooks. Overall demand sentiment was noted as steady, with most regular suppliers scheduled to announce their July allocation offers over the next few days. Domestic suppliers experienced a significant pickup in demand for material, with import offers witnessing a gradual increase over the last two weeks.
Domestic market players are seeking to procure Asian-origin PVC material ahead of the mandatory Bureau of Indian Standards (BIS) certification deadline for PVC imports in late August.
In India, overseas suppliers have offered their PVC resin Suspension grades in the range of USD 900-930/mt levels for shipment in June/July 2024.
A domestic industry source informed a Polymerupdate team member, “Reliance Industries Limited (RIL) has raised PVC grade prices by Rs.4/kg basic, wef June 1, 2024.”
In Sri Lanka, PVC prices were assessed at the USD 880-920/mt CFR levels, a gain of USD (+20/mt) from last week.
In Sri Lanka, overseas suppliers have offered their PVC resin Suspension grades in the range of USD 880-920/mt levels for shipment in June/July 2024.
In Bangladesh, PVC prices were assessed at the USD 880-910/mt CFR levels, a week on week rise of USD (+10/mt).
In Bangladesh, overseas suppliers have offered their PVC resin Suspension grades in the range of USD 880-910/mt levels for shipment in June/July 2024.
Meanwhile, in Pakistan, PVC prices were assessed stable at the USD 840-890/mt CFR levels. Prices in Pakistan were unchanged this week amid a lack of discussions. There were hardly any takers for higher import offers, given that demand conditions continued to be tepid. Meanwhile, customers are awaiting the monthly offer from a major domestic producer.
Asian market players were busy attending the Asia Petrochemical Industry Conference (APIC), a key petrochemical industry conference in Seoul, South Korea on May 30-31, 2024.
Feedstock EDC prices were assessed at the USD 250-260/mt CFR China levels, while CFR South East Asia EDC prices were assessed at the USD 295-305/mt levels, both unchanged week on week.
CFR South East Asia VCM prices were assessed at the USD 565-665/mt levels, a fall of USD (-10/mt) from the previous week. Meanwhile, CFR China VCM prices were assessed flat at the USD 615-625/mt levels.
Feedstock ethylene CFR North East Asia prices were assessed steady at the USD 850-860/mt levels while CFR South East Asia ethylene prices were also assessed stable at the USD 950-960/mt levels.
In plant news, Inner Mongolia Yihua is likely to undertake a planned shutdown at its Polyvinyl chloride (PVC) unit for maintenance on July 12, 2024. The unit is slated to remain offline until July 25, 2024. Located in Inner Mongolia, China, the PVC unit has a production capacity of 320,000 mt/year.
Shanxi Yushe Chemical has shut down its Polyvinyl chloride (PVC) plant for maintenance on May 28, 2024. The plant was slated to remain offline for about 5 days. Located in Shanxi, China, the plant has a production capacity of 390,000 mt/year.
Shandong Lutai is likely to take off stream its Polyvinyl chloride (PVC) unit for maintenance on June 17, 2024. The unit is slated to remain offline for about 5 days. Located in Shandong, China, the PVC unit has a production capacity of 300,000 mt/year.
