This week, PVC prices displayed a mixed undertone in the Asian region.
An industry source in Asia wishing to remain unidentified informed a Polymerupdate team member, "Stalled ceasefire negotiations between Israel and Hamas are expected to restart, easing concerns over possible disruptions in oil supplies from the Middle East. Furthermore, global geopolitical volatility has raised the appeal of the US dollar as a safe haven asset among international investors, leading to a continual rise in its value. Shifting global geopolitical dynamics and mixed market signals continue to pose a potential downside risk to crude oil prices.”
The source added, “It is reported that freight rates have eased across some shipping routes which could significantly lower transportation costs and normalize trade flows.”
In China, PVC prices were assessed at the USD 800-820/mt CFR levels, a rise of USD (+20/mt) week on week.
In China, a Taiwanese producer offered its PVC resin suspension grade at the USD 830/mt levels, for shipment in August 2024.
In China, prices firmed owing to higher import offers from overseas suppliers although demand continued to be muted in the region.
Spot market fundamentals exhibited mixed sentiments with supplies anticipated to rise during the week although demand continues to remain weak owing to a seasonal lull. Although export opportunities for PVC were active, export trade ebbed further with participants continuing to track the market situation while expecting continually declining freight rates from China to fall further. Meanwhile, the spot market is under pressure amid divergent demand and supply fundamentals with market players anticipating prices to fluctuate further.
In Southeast Asia, PVC prices were assessed at the USD 840-880/mt CFR levels, a week on week sharp gain of USD (+40/mt). The southeast Asian PVC market continued to experience minimal trading activity even as higher offers supported the prices.
In Southeast Asia, a producer from Taiwan offered its PVC resin suspension grade at the USD 875/mt levels, for shipment in August 2024.
Meanwhile, in India, PVC prices were assessed at the USD 900-930/mt CFR levels, a fall of USD (-30/mt) from the previous week. A domestic industry source informed a Polymerupdate team member, “Reliance Industries Limited has reduced PVC prices by Rs.4/kg, with effect from July 24, 2024. Meanwhile, the company has announced fresh price protection in PVC with effect from July 24 till August 1, 2024 with the earlier price protection having been withdrawn.”
In India, A Taiwanese producer has offered its PVC resin suspension grades S65D, S65, S60, S70 at the USD 910/mt levels, while B57 grade at the USD 930/mt CIF Nhava Sheva/Chennai/Pipavav/Mundra ports basis, for shipment in August/September 2024 (LC at Sight). These offers are sharply lower by USD 70/mt from last month's offer.
A South Korean producer has offered PVC Suspension grades at the USD 900-910/mt levels on CIF basis. Meanwhile, another South Korean producer has offered its PVC Suspension grades at the USD 910-920/mt levels on CIF basis.
In India, Finance Minister Nirmala Sitharaman raised the basic customs duty (BCD) on PVC flex banners from 10% to 25% in the recent budget, citing the need to curb their imports as they are non-biodegradable and harmful to the environment.
Indian PVC import prices continued to decline further, supported by a protractedly tepid purchase pulse and easing freight costs from China. New offer announcements by Taiwanese producers for August shipments have been lower from last month, with buying appetite dampened across South Asia with buyers exercising caution while making trade decisions. Seasonal factors have also adversely impacted demand for PVC, particularly from the domestic agriculture and construction sector, a trend which is likely to last through Q3 of the year. There has been a gradual easing in freight costs from China with the tightness in container availability across Asia also ebbing. Trading activity was limited through the week, primarily due to a lull demand season and reduced price expectations. Market sentiment has also been affected due to a lack of clarity surrounding the obtainment of BIS certification for global PVC producers. Currently, only South Korean and Taiwanese producers are heard to have obtained these certifications ahead of the August 26 deadline specified for its obtainment, fuelling expectations that the deadline could be extended.
In Pakistan, PVC prices were assessed at the USD 860-910/mt CFR levels, a fall of USD (-10/mt) week on week.
In Pakistan, a producer from China has offered its PVC resin suspension grade at the USD 860/mt levels, for shipment in August 2024.
In Sri Lanka, PVC prices were assessed at the USD 890-930/mt CFR levels, a drop of USD (-30/mt) from the previous week.
In Sri Lanka, a Taiwanese producer offered its PVC resin suspension grade in the range of USD 890-930/mt levels, for shipment in August 2024.
In Bangladesh, PVC prices were assessed at the USD 890-930/mt CFR levels, a week on week decline of USD (-10/mt).
In Bangladesh, a Taiwanese producer offered its PVC resin suspension grade in the range of USD 890-930/mt levels, for shipment in August 2024.
Prices declined in South Asia on the back of lower offer announcements from overseas suppliers. Limited trading activity was also witnessed in the region.
On Friday, feedstock EDC prices were assessed flat at the USD 305-315/mt CFR China levels, while CFR South East Asia EDC prices were assessed stable at the USD 335-345/mt levels.
On Friday, CFR South East Asia VCM prices were assessed at the USD 740-750/mt levels, up USD (+10/mt) from the previous week. Meanwhile, CFR China VCM prices were assessed at the USD 675-685/mt levels, rolled over from last week.
Feedstock ethylene CFR South East Asia ethylene prices were assessed at the USD 920-930/mt levels, while CFR North East Asia prices were assessed at the USD 850-860/mt levels, both unchanged week on week.
In plant news, Dezhou Shihua is likely to shut down its Polyvinyl chloride (PVC) plant for maintenance on August 15, 2024. The plant is expected to remain offline for about 10-15 days. Located in Dezhou, China, the PVC plant has a production capacity of 400,000 mt/year.
Shaanxi Beiyuan is likely to halt production at its Polyvinyl chloride (PVC) plant for maintenance on August 5, 2024. The plant is slated to remain offline until August 25, 2024. Located in Shaanxi, China, the PVC plant has a production capacity of 1.250 million mt/year.
AGC Vinythai has brought on stream its Polyvinyl chloride (PVC) plant in mid-July 2024. The plant was shut on July 9, 2024 following a glitch. Located in Map Ta Phut, Thailand, the PVC plant has a production capacity of 70,000 mt/year.
Ningbo Formosa is likely to undertake a planned shutdown at its Polyvinyl chloride (PVC) plant for maintenance on August 26, 2024. The plant is slated to remain offline until September 4, 2024. Located in Ningbo, China, the PVC plant has a production capacity of 400,000 mt/year.
