VCM shutdowns add to firming in Asian PVC markets

As the bullish run in Asian PVC markets persists on the back of several factors including limited supplies, strong demand in India as well as soaring crude oil futures and high ethylene prices, VCM shutdowns across the region have also started to be cited as another supportive factor recently.

Indonesia’s Asahimas shut its 250,000 tons/year No 2 VCM line early last week for 40-45 days.

Japan’s Keiyo’s 200,000 tons/year capacity VCM plant will undergo a planned maintenance in the February-March period while Japan’s Tosoh VCM will also have a scheduled maintenance at its 254,000 tons/year VCM capacity Yokkaichi plant in the March-April period.

As can be seen in the graph below created by ChemOrbis Price Wizard, spot VCM prices on CFR FEA basis have currently reached their highest levels since mid-April 2017 on average on the back of shutdowns and the ongoing bullishness in the downstream PVC market. Prices have reached a nine-month high after posting a cumulative increase of around $110/ton for two consecutive weeks.



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