The Asian PVC market has seen a price downtrend this week. Formosa has marked down PVC to be shipped to all the destinations in April by $60—70/t. Chinese and Indian customers have received offers of $865/t CFR China and $900/t CFR India, down $60/t and $70/t respectively, from the company. It has also decreased the quotes to Asian customers by $60/t to $860/t CFR Southeast Asia and $820/t FOB Taiwan.

In China, PVC demand is below supply. However, large- and medium-sized converters are buying the polymer. Small ones are doing so only when necessary. ‘Market sentiments are mixed due to uncertainty about demand. Everyone waits for the new economic stimulus that may take effect in April,’ a Chinese distributor has said. Chinese sellers have put more ethylene- and carbide-based PVC up for export sale this week and prices have started falling in Asia. PVC has depreciated by $20/t to $860—890/t CFR China. Carbide- and ethylene-based PVC has been available at $820—850/t FOB China and $860—890/t FOB China respectively, down by $15/t. Prices for the most actively traded PVC futures for May delivery have dipped CNY 154/t ($22/t) week on week to CNY 6,170/t ($898/t) EXW on China’s Dalian Commodity Exchange this Friday.

The Indian market has slowed this week because old orders have been arriving from the United States and China. Moreover, China is seeking to export vast amounts of the material now and locals are concerned about the future of Indian market. ‘It is difficult to determine the price range now as South Korean and Thai producers offer PVC at $960/t and cannot sell, while China quotes $880/t and market participants think that this price is too high as well,’ an Indian distributor has told PVC Market Weekly. PVC has been available at $880—940/t CFR India this week. Some market players have said that delivery of the previously ordered goods may push prices about $100/t down in India in April. Others think that these are short-lived pessimistic sentiments.

In Southeast Asia, PVC has depreciated by $20/t to $860—900/t CFR Southeast Asia. Chinese suppliers are undercutting their rivals in Southeast Asia. However, regional customers are making purchases ad hoc. Vietnam's current regulations prevent local businesses from accessing the much-needed large-scale international capital that domestic credit institutions cannot provide. This restriction is hindering the growth and expansion of businesses in the real estate sector. In addition, real estate market players are calling on the authorities to pay attention to mid-range and high-end real estate projects that were nearing completion before coming to a halt for lack of funding.

Demand for PVC is likely to stay the same as now in Asia. The Chinese material will continue flooding into the regions around the globe. It is likely to depreciate by $5—15/t next week due to low demand. In India, PVC prices are likely to go $10—30/t down because of local oversupply and the dumping by Chinese sellers. In Southeast Asia, demand will stay at and prices may go $10—20/t below the current level due to low demand.