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Asian PVC Prices Continues Bearish Movement in April amid Demand Dullness
Asian PVC Prices Continues Bearish Movement in April amid Demand Dullness

Asian PVC Prices Continues Bearish Movement in April amid Demand Dullness

  • 24-Apr-2024 2:52 PM
  • Journalist: Patricia Jose Perez

The Polyvinyl Chloride (PVC) market in Asia experienced a decline in prices during April 2024, indicating subdued trading sentiments exacerbated by abundant supply. Market participants across Asia are eagerly anticipating new price announcements from major Taiwanese producers for May shipments. Converters are expecting a decrease in the prices offered for imports during this timeframe.

Taiwanese benchmark prices for PVC have experienced a notable decline, due to an ease in the upstream Ethylene costs. This downward trend reflects the prevailing bearishness in Asian PVC markets. However, concerns have been raised by some sellers regarding the sustainability of this price reduction strategy in light of the increasing upstream crude oil costs, as a result, PVC prices were stabilized by the regional players for the time being.

During the past week, the Chinese PVC spot market experienced slight fluctuations, notably with a minor decrease in prices. Overall, confidence in the spot market remains moderate, as prices have seen minimal change. Manufacturers' quotations have generally remained steady, while traders have exhibited some flexibility in their pricing. Downstream procurement activity has been cautious, characterized by a prevalent wait-and-see approach and subdued downstream market sentiments, resulting in average transaction volumes. Regarding feedstock calcium carbide, a slight decrease in prices from manufacturers marking an ease in the overall costs of PVC      this week. Thus, PVC shows low volatility, and the process of depleting inventory is moving slowly in the region.

The ample availability of PVC in the regional market has led buyers to anticipate further price cuts, with observations indicating that the Taiwanese major may struggle to sell its full May quotations despite the price adjustments. This sentiment is underscored by the decision of the Taiwanese major to cut prices despite the notable increase in freight rates, signaling the prevailing bearish sentiment in the regional market.

Further from the downstream demand perspective, concerns persist regarding weak demand in China, characterized by slowing orders for PVC and low production levels. In Southeast Asia, a similar scenario prevails, with sellers open for bidding and offering discounts to stimulate demand amidst sluggish market activity, which has been further subdued by ongoing festivals in the region.

As per ChemAnalyst, the PVC prices are expected to decrease in May 2024, due to low downstream demand and adequate supplies in the line of ease in the upstream costs. Anticipated ongoing fluctuation and consolidation within a specific range in the PVC spot market shortly along with the cautious downstream procurement sentiments in the Asian market.

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