Local PVC markets across SE Asia end March at multi-year lows

After ending February on a weak note, Southeast Asia’s domestic PVC markets showed little optimism in March, as prices continued to hit new lows toward the month’s end. According to the weekly average data obtained from ChemOrbis Price Index, local PVC prices across key markets in the region maintained a downward trajectory, continuing their stable-to-lower trend throughout the month.

The markets remained clouded by bearish sentiment as demand stagnated, and buyers were reluctant to engage, anticipating further price declines. Despite some market talk about price increases due to the swift sell-out of April allocations by a major Taiwanese producer, most market participants doubted the likelihood of any significant price hikes in the near term due to the ongoing weak demand.

A trader based in Vietnam said, “There are rumors suggesting that prices may rise after the major Taiwanese producer rapidly ran out of April allotment. However, we don’t see price increases materializing anytime soon given the overall lack of demand.”

Indonesia and Thailand see prices at near 5-year lows

As of the week ending March 28, local prices in Indonesia were assessed IDR200,000/ton ($12/ton) lower compared to the previous week, while in Thailand, they dropped by THB500-1000/ton ($15-29/ton). Both markets were seen nearing their lowest levels in almost five years, according to ChemOrbis Price Index data.

According to local market participants, some Indonesian sellers adjusted their pricing following the Taiwanese major’s announcement of lower offers for April shipments. Meanwhile, a Thai converter said, “PVC prices have dropped by around THB500/ton, but we are not rushing to replenish stock unless prices fall below THB24,000/ton.”

Vietnam lags behind other markets

Vietnam’s PVC market showed the weakest performance in Southeast Asia. With renewed weekly drops of VND500,000/ton ($20/ton), the market hit its lowest level since H2 November 2022, while prices in US dollar terms continued to trade below that in other major markets.

A source from a local producer noted, “We offer at VND18,000,000/ton for small buyers, while bulk buyers are eligible for lower prices. While there has been a slight uptick in demand due to some government stimulus, overall conditions remain unfavorable. Our plants are operating at reduced capacity due to weak buying interest and low prices.”

Malaysia shifts after five months; Philippines in hiatus

In Malaysia, after maintaining a relatively stable range since late October 2024, local PVC prices took a downturn, falling by MYR50-100/ton weekly and reaching their lowest point in nearly two years, according to ChemOrbis Price Index.

Meanwhile, in the Philippines, sellers continued to roll over offers, maintaining a stable trend in the local market for the seventh consecutive week. Data from ChemOrbis also revealed that domestic prices in the Philippines hovered around their near five-year lows.