Polyvinyl chloride (PVC) prices across Asia faced renewed downward pressure this week, reflecting the combined weight of oversupply, soft downstream demand, and subdued regional trade activity. While most markets registered price declines, India stood out as relatively stable, supported by domestic price adjustments and policy factors, even as consumption there also showed signs of weakness.
A source in Asia explained that global macroeconomic challenges continue to weigh on the market, citing the Russia–Ukraine conflict and persistent U.S. sanctions on major oil producers as major drivers of crude oil volatility. Elevated feedstock costs have compounded uncertainty in the petrochemicals chain, though the more immediate drag on PVC prices has been regional oversupply and the steady influx of cheaper Chinese and U.S. cargoes. Sectors traditionally driving demand, construction, automotive, and packaging, have slowed notably, while global industrial activity has been muted by broader economic headwinds.
In China, PVC prices dropped to USD 700–720/mt CFR, down USD 10/mt from the previous week. Offers from Taiwanese and Asian producers were reported at USD 710–730/mt CFR for September shipment. The weakness was reinforced by a fall in PVC futures and a decline in coal prices, a crucial input for Chinese PVC production. This has lowered production costs while simultaneously reducing export offers, making Chinese cargoes increasingly competitive in global markets. However, domestic demand remains soft, with high inventory levels and a sluggish economic recovery keeping buyers cautious.
Southeast Asia saw a sharper correction, with CFR values falling to USD 650–680/mt, a week-on-week decline of USD 30/mt. Regional trading was described as muted, with most contract deals already concluded for the month and little new spot demand emerging. A single transaction at lower levels underscored the bearish tone, as sellers struggled to place material into a market dominated by weak downstream pull. Traders noted that September offers from key producers have emerged below expectations, deepening the negative sentiment and reinforcing the market’s bearish outlook. In Vietnam, a Taiwanese producer was heard offering suspension-grade PVC at USD 680–685/mt CFR.
India was an exception, with CFR prices holding steady at USD 730–760/mt. Reliance Industries Limited raised domestic PVC prices by Rs.1.50/kg from September 1, 2025, while simultaneously withdrawing earlier discount schemes. Offers from Taiwanese producers hovered around USD 760–770/mt CIF for September shipments. Domestic sentiment has been shaped by the anticipated imposition of anti-dumping duties (ADDs), which would support local producers. Yet, actual buying activity has been muted, with weaker end-use demand and seasonal monsoon disruptions curbing restocking. Market participants cautioned that the usual September revival in pipe-sector demand may be delayed this year.
Elsewhere, Pakistan saw CFR prices ease to USD 720–750/mt, down USD 10/mt from last week. Offers from Indonesian and overseas producers ranged between USD 730–750/mt CFR. However, heavy monsoon rains and flash floods severely disrupted logistics and industrial activity, limiting demand from construction and packaging sectors. In Sri Lanka, CFR assessments dropped by USD 20/mt to USD 700–730/mt, while Bangladesh registered values at USD 680–720/mt, down USD 10/mt on the week. In both markets, trading remained limited as buyers avoided fresh commitments amid economic challenges and already high inventories.
Feedstock dynamics showed mixed signals. Ethylene prices in Northeast Asia held steady at USD 835–845/mt CFR, while Southeast Asia values edged up by USD 5/mt to USD 830–840/mt CFR. EDC prices strengthened by USD 10/mt across China and Southeast Asia, assessed at USD 185–205/mt CFR. In contrast, VCM values slipped, with Southeast Asia falling USD 10/mt to USD 535–545/mt and China dropping USD 20/mt to USD 500–510/mt.
Adding to the shifting supply outlook, Hanwha Solutions is expected to shut down its PVC plant in Ulsan, South Korea, in November 2025 for maintenance. The unit has a suspension-grade capacity of 210,000 mt/year and an emulsion-grade capacity of 95,000 mt/year. Though the exact duration is unknown, the outage could temporarily tighten supply, offering some support to regional pricing.
Overall, Asia’s PVC markets remain under strain from abundant supply and fragile demand. While India’s domestic adjustments provided a measure of stability, the broader regional picture remains bearish, with meaningful recovery hinging on improved downstream consumption and clearer macroeconomic signals.
