Asian vinyl chloride monomer (VCM) prices were divergent in March xxxx, where a drop was registered in India and a sharp increase in Japan. This divergence relates to regional feedstock dynamics, Japan maintenance activity, and changing trends in downstream PVC and packaging markets.
In India, VCM prices were lower in March due to weaker upstream ethylene costs, adequate supply, and sluggish buying activity. Ethylene, being a major feedstock for VCM, witnessed price falls throughout Asia. This decrease in the cost of feedstock eroded cost support for Indian VCM makers.
Therefore, the Indian market is now oversupplied, while demand for VCM is sluggish even as long-term prospects of PVC consumption look strong. VCM finds applications in PVC manufacture, which sustains packaging, infrastructure, and construction sector demands in turn.
Though India&#xx;s vinyl sector is expected to grow in the long term, with PVC demand set to double...
