Asian PVC Prices Decline as Supplies Rise and Demand Weakens

Asian polyvinyl chloride (PVC) prices are experiencing a downturn in October 2024 following the Chinese holiday period. Demand is softening, causing the earlier upward momentum in the spot market to fade. This week, PVC prices are dropping, driven by a weakening futures market and an oversupply situation.

Manufacturers are increasing production rates, with many operating at full capacity, adding pressure on shipments. In response to rising inventories, dealers are lowering prices, leading to a decline in market offers. Downstream interest remains weak, with buyers focusing primarily on immediate spot needs and showing little interest in larger purchases.

The feedstock prices are not supporting the weakening PVC prices. The calcium carbide market, a key raw material for PVC production, is showing fluctuating dynamics. After a rise in early October, prices are now falling, and with the softening PVC market, further price shifts in calcium carbide are expected.

Additionally, the Intra-Asia Container Index (IACI) is down by 15% in the first half of October, with spot rates on some intra-Asia routes continuing to fall significantly. This reflects reduced demand and excess shipping capacity, leading to lower container transport costs across the region.