Polyvinyl chloride (PVC) prices witnessed a downward trend in several parts of Asia this week, as the market faced the dual challenge of oversupply and weakening demand.
An industry source in Asia, speaking on condition of anonymity, told a correspondent that crude oil values are expected to remain range-bound to slightly positive, supported by heightened Middle East tensions and the prospect of stricter U.S. sanctions on Russian oil. A smaller OPEC+ output hike is also playing a role in maintaining price stability. However, rising U.S. inventories and weak physical demand could prevent any significant upside, while traders continue to watch U.S. stockpile data and signals from the Federal Reserve for direction.
The source further explained that the recent decline in PVC pricing has stemmed from multiple pressures. A key factor has been oversupply, with increased production and inventory buildup adding to the market’s surplus. Demand from core consuming sectors such as construction, automotive, and packaging has also softened, limiting buying activity. In addition, the arrival of competitively priced PVC cargoes from China and the United States has intensified competition, creating difficulties for regional producers to uphold higher values. The broader backdrop of global economic uncertainty and reduced industrial output has further weighed on sentiment.
Market assessments reflected this bearish mood. In China, PVC was evaluated at USD 690-710/mt CFR, marking a decline of USD 10/mt week on week. Southeast Asia, however, saw stable pricing at USD 650-680/mt CFR. In India, values were unchanged at USD 730-760/mt CFR, though competition from Chinese-origin cargoes priced at USD 690/mt highlighted the pressure from lower-cost imports. Pakistan witnessed a sharp drop, with prices slipping by USD 25/mt to settle at USD 695-725/mt CFR. In Sri Lanka, PVC declined by USD 10/mt to USD 690-720/mt CFR, while Bangladesh remained steady at USD 680-720/mt CFR.
Feedstock dynamics offered limited support. EDC prices were assessed steady at USD 185-195/mt CFR China and USD 195-205/mt CFR Southeast Asia. VCM values held flat at USD 500-510/mt CFR China and USD 535-545/mt CFR Southeast Asia. Ethylene remained stable at USD 835-845/mt CFR Northeast Asia, with Southeast Asia rising slightly by USD 5/mt to the same range.
On the production front, market players are closely watching South Korea, where Hanwha Solutions is expected to shut down its PVC unit in Ulsan for a planned maintenance turnaround in November 2025. While the exact dates and duration remain unconfirmed, the facility’s significant suspension capacity of 210,000 mt/year and emulsion capacity of 95,000 mt/year could temporarily tighten regional supply.
Despite isolated stability in some regions, the overall sentiment in the Asian PVC market is tilted downward, with abundant supply, weak demand, and competitive imports exerting firm pressure on prices.
