Asian PVC markets see bulls digging in despite the raging monsoon

Bulls in the Asian PVC markets are aggressively pawing the ground in the latest week amid the notifications of higher June prices by a major Taiwanese player that saw good buying response. The move has lifted sentiment across key regional markets, including India, China, and Southeast Asia, prompting other suppliers to follow with their own price increases.

This surge in activity reflects a combination of pent-up demand, tightening availability, and renewed confidence, even as macro uncertainties and weather-related disruptions persist.

According to ChemOrbis Price Index data, import PVC K67 prices have risen by $25/ton in the last couple of weeks to an average of $705/ton CIF India. The weekly average of import prices in China during the same period rose by $35/ton to $695/ton CIF, while Southeast Asian prices rose by $18/ton to $660/ton CIF.



Taiwanese major raises prices for June

“There has certainly been an improvement in market sentiment in the last couple of weeks. The latest prices from a major Taiwanese producer have only proved that sentiment correct,” said a trader based in Mumbai, India’s commercial hub. “We’re hearing significant increases in the offered prices from South Korea and Taiwan, especially after the benchmark offers from a Taiwanese major was reported $10-20/ton higher early in the week,” he added.

Following a two-week delay, the Taiwanese major notified its June PVC offers to Asia, applying modest hikes in line with most expectations. It raised PVC K67-68 offers by $20/ton to $720/ton CIF India, by $10/ton to $710/ton CIF China, and by $10/ton to $670/ton FOB Taiwan. No volume discounts were offered. For May, the producer had rolled over prices.

Although June marks the beginning of the monsoon season in India — that typically sees lower uptakes — the Taiwanese major opted for a price hike. Indian players had previously put off purchases despite the high season, citing market uncertainties, weak demand, and tariff concerns related to the US. Urgent requirements were mostly met through the local market, which, as the months went by, has created a sense of pent-up demand now.

India’s weather office has predicted above-normal rainfall in June of around 108% of the long-period average (LPA). The India Meteorological Department (IMD) said the overall June-September monsoon season is likely to deliver 106% of the LPA of 87 cm.

“Players who haven’t been stockpiling for about six months are back with buying inquires, even after the monsoon making an early landfall in southern India this year, normally bearish for PVC. People have started buying and this has prompted sellers to hike prices,” another major Mumbai-based trader said.

Other origins follow suit with higher offers

The Taiwanese allotments to India for June, thought to be around 18,000 tons, were reportedly sold out shortly after the prices were notified on May 26. After the benchmark prices were known, a Taiwanese compatriot producer, a small player in India, notified its import price at $730/ton CIF, which was $10/ton higher than the major’s price. A major South Korean producer was also noted to be offering at $740/ton CIF. A Japanese duty-free offer was noted at $780/ton CIF India, equivalent to $720-725/ton for a dutiable shipment.

“We hear prices being offered above the Taiwanese major’s $720/ton. The major was able to sell out without much difficulty and other sellers are looking to see whether they can sell off as much as possible before the anti-dumping duties (ADD) come into force,” the trader said.

According to the trader, transactions for Chinese-origin PVC were few and far between because of concerns that shipments would be rendered distressed in the event of the ADDs coming into force after the vessels move out. “People are mostly steering clear of Chinese shipments as they’re not clear when the ADD will come into force. Further, a BIS deadline is round the corner – by end-June – and this was another factor for the market to take note off,” a trader said.

China, SEA prices also see sentiment improving

FOB offers from China also posted gains from last week amid an improvement in sentiment driven by the US-China trade truce. Firmer freight rates have also lent additional cost support for imports into China, traders said. Producers raised their export offers to align with the Taiwanese major’s June offer hike.

“Market sentiment has turned positive following the 90-day tariff truce between the US and China, although downstream markets are only slowly ramping up production while local demand remains limited. Indian demand has emerged as there was little buying from India in the past 6 months,” said a source at a producer in China. Other producers in the country echoed the same sentiment.

In Southeast Asia, both domestic and import PVC prices rose after the Taiwanese major’s latest pricing notifications. “We are buying at whatever prices are being offered as sellers are unlikely to give discounts. In this market, they can easily sell out shortly after offering. Buyers are worried prices may rise and they think current levels are reasonable,” said a trader in Vietnam. “Buyers have started building inventories,” he continued. But he felt the market trend was still unclear.