Polyvinyl chloride (PVC) prices declined in the United States and Asia at the end of June 2025 as oversupply, weak downstream demand, and market volatility pushed the global PVC market downward.
In Asia, PVC prices softened in major markets of China, Southeast Asia, and India. Prices softened week-on-week in China. Although there was a short-term surge in transaction volumes in the early part of the review period due to restocking, overall demand remained weak due to poor operating rates in the downstream sectors and rising inventories. Although there were ongoing domestic turnarounds for maintenance in units such as Xinpu Chemical and Erong, market sentiment remained bearish, especially with new production capacities entering the market, which would negate any supply curtailments.
The Southeast Asian market was also under pressure as PVC prices fell from the previous week. Local producers were unable to compete with low Chinese exports, and new trade tariffs and taxation schemes, like the 5% sales and service tax on PVC imports proposed by Malaysia, also added to market uncertainty. Doubts regarding US tariffs on Southeast Asian imports further eroded buyers' confidence.
PVC prices fell the most in India. Postponement of India's deadline for BIS certification to December 2025 has unleashed a wave of lower-priced Chinese PVC imports, further compressing other Asian producers. In addition, the monsoon season and reduced construction activity have drained demand, especially from pipe manufacturers. Although a few manufacturers like Reliance Industries slightly increased local prices, the aggregate market mood was bearish.
The Asian PVC market exhibited poor buying interest, and macroeconomic issues in terms of currency fluctuations and import financing issues further weakened demand. In Pakistan, the market was subdued with prices declining because of seasonal monsoon-related slowdown and religious festivals.
Concurrently, in the US, PVC export prices fell modestly on light trading. Buyers were hesitant in the face of fresh July offers and waited for price guidance after price increases by major Asian producers. Partly confirmed deals at lower price points also helped the week-on-week fall. The market hasn't been reacting aggressively even with robust fundamentals because of sufficient availability and aggressive foreign offers.
As per ChemAnalyst, in the short term, PVC prices are expected to remain under pressure, with producers' elevated operating rates expected to continue driving inventories higher, and recovery in demand sluggish. Export markets across the globe will offer some relief, but overall, PVC prices will remain weak until there is a better supply-demand equilibrium.
