Despite higher EDC and VCM feedstock values, PVC prices declined in the Asian region.
An industry source in Asia wishing to remain unidentified informed a Polymerupdate team member, "Bearish global economic outlook coupled with slowing demand continues to weigh on oil market sentiments. Meanwhile, Israel has reiterated that it remains committed to participating in ceasefire negotiations to end the Gaza conflict, easing concerns over supply disruptions.”
In China, PVC prices were assessed at the USD 780-800/mt CFR levels, a sharp fall of USD (-30/-40/mt) from the previous week.
In China, overseas suppliers have offered their PVC resin suspension grades in the range of USD 780-800/mt levels, for shipment in August 2024.
In China, prices fell owing to dampened demand in both the domestic and export markets. PVC futures experienced a protracted decline amid a lull demand season, exerting a bearish pressure on spot prices. As China continues to grapple with plentiful supplies with the domestic market inadequately equipped to absorb the excess volumes, both producers and traders were prompted to offer material at discounted rates to bolster sales.
Indian buyers were seen adopting a cautionary approach even as export trade from China experienced a decline ahead of the impending implementation of Bureau of Indian Standards (BIS) certificate mandate for PVC exports. Anticipated freight rate decreases in late July and August could also influence purchase trends in the region. Demand for Asian spot PVC had further crimped amid market participants awaiting new PVC price offer announcements for August shipment from a major Taiwanese producer.
In Southeast Asia, PVC prices were assessed at the USD 800-840/mt CFR levels, a week on week fall of USD (-10/-30/mt). The southeast Asian s-PVC market was quiet with buyers across the region awaiting new Taiwanese offers prior to making fresh purchase decisions, even as regional demand sentiments remained tepid, mirroring the seasonal lull with buyers exhibiting reluctance to commit to new purchases given that freight rates are expected to ease.
Authorities at the Singapore transshipment port have pointed to an easing in congestion of vessels which could possibly lead to reduced wait time for berthing. Market participants were confident that container freight rates would normalize in a gradual manner.
In South East Asia, overseas supplier have offered their PVC resin suspension grades in the range of USD 800-840/mt levels, for shipment in August 2024.
In India, PVC prices were assessed at the USD 930-960/mt CFR levels, a drop of USD (-20/mt) from last week. A domestic industry source informed a Polymerupdate team member, “Reliance Industries Limited reduced PVC prices by Rs.4/kg, with effect from July 11, 2024.”
The source added, "Meanwhile, RIL has announced price protection in PVC wef 16 July 2024 till 1 August 2024, or the next price revision, whichever is earlier."
In India, PVC import prices trended persistently lower, owing to dampened demand for additional cargoes. Declining container freight rates further drove prices lower. However, market participants noted that most producers from northeast and southeast Asia continue to face challenges in the form of delayed shipment scheduled and logistics bottlenecks owing to short supply of container space.
Above-normal rainfall in parts of India is likely to adversely impact demand for pipe later in July, with a further weakening anticipated later this month when August shipment offer announcements are made. Although additional demand for PVC continues to remain sluggish with the onset of the monsoon season, mounting concerns over obtainment of BIS certification by most global PVC producers could impede import trade flows. A majority of PVC producers in the US and Europe are yet to undergo BIS audits while only producers from Taiwan and South Korea are heard to have obtained the certification. A meeting was held on July 11 between concerned stakeholders to assess the fallout of the current BIS implementation, though it is widely anticipated that the initial deadline of August 26 will be extended with most producers in Asia not having received the certification.
In Pakistan, PVC prices were assessed at the USD 870-920/mt CFR levels, a drop of USD (-20/mt) week on week.
In Pakistan, an Indonesian producer has offered its PVC resin suspension grade at the USD 920/mt levels, for shipment in August 2024. An USA producer has offered its PVC resin suspension grade at the USD 870/mt levels, for shipment in August 2024.
In Sri Lanka, PVC prices were assessed at the USD 920-960/mt CFR levels, a fall of USD (-10/mt) from the previous week.
In Sri Lanka, a producer from China has offered its PVC resin suspension grade at the USD 920/mt levels, for shipment in August 2024. An overseas supplier has offered its PVC resin suspension grade at the USD 960/mt levels, for shipment in August 2024
In Bangladesh, PVC prices were assessed at the USD 900-940/mt CFR levels, a week on week decrease of USD (-10/-20/mt).
In Bangladesh, overseas supplier have offered their PVC resin suspension grades in the range of USD 900-940/mt levels, for shipment in August 2024.
In Pakistan, Sri Lanka and Bangladesh, prices edged lower, following lower offers and a slowdown in market discussions.
On Friday, feedstock EDC prices were assessed at the USD 305-315/mt CFR China levels, a rise of USD (+20/mt) from the previous week. Meanwhile, CFR South East Asia EDC prices were assessed flat at the USD 335-345/mt levels.
On Friday, CFR South East Asia VCM prices were assessed at the USD 730-740/mt levels and CFR China VCM prices were assessed at the USD 675-685/mt levels, both week on week increased by USD (+5/mt).
Feedstock ethylene CFR South East Asia ethylene prices were assessed at the USD 920-930/mt levels, a fall of USD (-5/mt) from last week. Meanwhile, CFR North East Asia prices were assessed stable at the USD 850-860/mt levels.
In plant news, Wanhua Chemical Group is likely to take off stream its Polyvinyl chloride (PVC) plant for maintenance in the second half of July 2024. Further details on the duration of the shutdown could not be ascertained. Located in Yantai, Shandong in China, the PVC plant has a production capacity of 400,000 mt/year.
In another plant news, Tokuyama Corp has taken off stream its Vinyl chloride monomer (VCM) unit for maintenance on July 11, 2024. Further details on the duration of the shutdown could not be ascertained. Located in Tokuyama, Japan, the VCM unit has a production capacity of 330,000 mt/year.
