China PVC export prices edge up, but eyes on Taiwanese major’s delayed June offers to Asia

Import PVC K67 prices across Asia remain near five-year lows, but market sentiment showed tentative signs of improvement this week as Chinese export offers edged higher. Meanwhile, the major Taiwanese PVC producer has postponed its highly anticipated June price announcement to next week, leaving regional players uncertain about the upcoming direction.

Chinese export offers inch higher on tariff optimism and firm futures

In China, several producers and traders reported small increases in export prices, driven by firmer futures and improved sentiment following adjustments in US tariffs. A Chinese trader noted that carbide-based PVC offers rose by $10-20/ton from the previous week, while ethylene-based offers increased by $10-15/ton.

“The futures market has remained firm recently due to optimism around broader commodity sentiment and the tariff changes,” a source from a Chinese PVC producer said. “However, demand fundamentals remain largely unchanged, and downstream activity is still weak,” he added.

Southeast Asia: Regional demand still sluggish despite price uptick

Despite the modest uptick in import prices, buyers across Southeast Asia remained cautious. A Vietnamese trader raised his offer by $5/ton, citing higher domestic prices in China and rising freight rates, but reported a lack of interest from buyers. “The high exchange rate also makes it difficult to lower prices further, even though buyers are still pushing for discounts,” he said.

In Southeast Asia, market activity remained largely subdued. An Indonesian compounder observed steady domestic offers amid sluggish demand. “Most players are waiting for the major Taiwanese producer’s June offers,” he said. A trader in the Philippines echoed this view, noting both domestic and import prices remained flat.

India: Freight surge and Chinese prices support firmer sentiment

In India, sentiment has been more optimistic. Multiple traders reported a rebound in import prices, citing the rise in Chinese export levels and surging freight costs. “There’s nothing available below $680/ton CIF India now,” one Indian trader stated. “We expect the Taiwanese major to increase prices by $10/ton, or at worst, keep them stable. They simply can’t go below the historic low of $700/ton CIF they offered for May.”

Another trader highlighted increased US-bound shipments due to recent tariff decisions. “With a 90-day grace period, carriers are prioritizing the US, causing space shortages and spiking freight rates elsewhere. Many Chinese suppliers are withholding CIF offers because of this uncertainty,” he said.

Mixed expectations for Taiwanese major’s delayed June offers

While some participants foresee a rollover or slight increase in the Taiwanese major’s upcoming announcement, others still believe a small reduction is possible. “There’s a high chance of a price cut,” said a Vietnamese trader, pointing to weak regional demand and competition from Japanese cargoes that have fallen by $10/ton compared to last month.

Still, a growing number of players believe prices may have bottomed out. “There’s pent-up demand in India. Even during the monsoon, buyers are expected to accept the Taiwanese major’s allocations,” said an Indian trader. “We haven’t seen significant buying activity for months, and prices can’t go any lower,” he added.