Asian Polyvinyl Chloride (PVC) market stayed stable in early June 2025, with weak demand and high inventories offsetting supply-tightening maintenance shutdowns. Outlook remains stable to bearish amid muted buying and ample stocks.
In China, despite sluggish futures and muted downstream demand, the PVC market showed resilience. Though trading remained curbed because of low-cost spot business and high stocks, a mild pre-shipment offer uptrend for June revealed hints of possible cost-push tension from logistics. Further, exporters diverted shipping routes to favor U.S.-bound containers during a tariff respite, influencing container availability in intra-Asia routes.
In contrast, PVC demand in Southeast Asia was sluggish. Local converters were not interested in buying extra volumes because of sufficient stocks and expected contribution from China's new capacity by the end of Q2. Yet, higher import offers led by a prominent Taiwanese PVC producer indicated accelerating production expenses. Vietnam, Malaysia, and Thailand markets continued prudent buying, indicating a balanced but delicate supply-demand situation in the PVC market.
The PVC market in India, within the South Asian region, reflected a blend of market sentiments. Although more firm June shipment offers and increasing freight levels nudged some supply-side solidifying. Dull downstream consumption, seasonal monsoon effects on agriculture and construction, and regulatory change uncertainty muted demand. Additionally, participants watched the near-term June 24 Bureau of Indian Standards (BIS) certification deadline, which may restrict PVC imports, especially from non-certified Chinese manufacturers.
Bangladesh and Sri Lanka posted marginally stronger offers, but exact buying demand was muted by poor downstream offtake and economic concerns. Pakistan's market, on the other hand, was characterized by calmness, with good stocks and modest spot trading volume.
Underpinning the supply side, several scheduled maintenance turnarounds throughout Asia exerted pressure on the PVC supplies. During June 2025, several PVC production facilities underwent brief maintenance shutdowns. These included Tokuyama Sekisui in Japan; Sinopec Qilu Petrochemical, Shandong Xinfa Chemical, Shanxi Huojiagou, and Shaanxi Beiyuan in China; as well as Hanwha Chemical in South Korea, and Chemplast Sanmar and Finolex Industries in India. These shutdowns adjusted the production output temporarily, however had minimal short-term impact on supply owing to inventory built-up and poor buying appetite. Previous maintenance at Shaanxi Jintai ChlorAlkali and Tosoh Chemical Industries in May and current work at Indonesia's Siam Maspion Polymer also helped to create a managed supply situation in the PVC market during this timeframe.
As per ChemAnalyst, PVC market players are cautious for June 2025. Although freight cost escalation and maintenance-related supply limitations may underpin prices, weak demand, high inventory levels, and regulatory uncertainties in major markets are set to limit meaningful upmovement. Therefore, the Asian PVC market is likely to continue with its stable to bearish trend in the near term.
