Polyvinyl chloride (PVC) prices trend lower in Asia

This week, PVC prices journeyed southward in the Asian region, as per Polymerupdate.

An industry source in Asia on condition of anonymity informed a Polymerupdate team member, "Crude oil prices gained ahead of a widely anticipated interest rate cut by the United States Federal Reserve. Meanwhile, a strengthening of the US dollar against major Asian currencies has continued to dampen market sentiment in the Asian region." The source added, “Ample product avails and muted trading activity further weighed bearishly on prices.”

In China, PVC prices were assessed at the USD 720-740/mt CFR levels, a drop of USD (-10/-20/mt) from the previous week. In China, a Taiwanese producer has offered its PVC resin suspension grade at the USD 740/mt levels for shipment in January 2025. In China, the domestic market exhibited a sluggish sentiment amid a seasonal lull typically seen during the winter. Producers from the country were thus prompted to separately lower their export offers to stimulate buying in the spot market.

In Southeast Asia, PVC prices were assessed at the USD 730-770/mt CFR levels, a week on week fall of USD (-10/-20/mt).

In Vietnam, a major producer from Taiwan has offered its PVC resin suspension grade at the USD 770/mt levels for shipment in January 2025.

In southeast Asia, demand is likely to weaken slightly ahead of the Lunar New Year holiday. Supplies are expected to be ample in the region, with material avails anticipated to be sufficient from producers in northeast and southeast Asia.

In India, PVC prices were assessed at the USD 780-810/mt CFR levels, lower by USD (-20/mt) from last week.

In India, A major Taiwanese producer has offered its PVC resin suspension grades at the USD 785/mt levels CIF Nhava Sheva/Chennai/Mundra ports basis, for shipment in January 2025 (LC at Sight). These offers are lower by USD 25/mt from last month's offer.

A producer from South Korea has offered its PVC resin suspension grade at the USD 810/mt levels, for shipment in January 2025.

In India, PVC spot activity was muted during the week with buyers as well as sellers opting to remain on the sidelines while awaiting greater clarity on the impending implementation of anti-dumping duties (ADDs), following an oral hearing wherein participating suppliers were asked to present their views on the proposed duty structure, as well as Bureau of Indian Standards (BIS) certification mandate for PVC imports. Meanwhile, market activity slackened significantly during the week owing to a depressed purchase pulse following bulk quantity imports over October-November which led to the accumulation of sufficient inventories. Domestic demand had also weakened, as evidenced by end-use manufacturers seemingly reluctant to maintain stocks amid lacklustre sentiments in the market.

In Pakistan, PVC prices were assessed at the USD 785-810/mt CFR levels, a week on week decline of USD (-5/-10/mt).

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The Swiss authorities have decided to join the European Union's 15th package of anti-Russian sanctions adopted on December 16 and measures against Belarus, the Swiss government said in a statement on its website on Monday, as per Interfax.

"The Federal Department of Economic Affairs, Education and Research [EAER], in its capacity as the competent body for sanctions, has expanded its list of sanctions against Russia and Belarus. Switzerland is thus adopting the additional sanctions decided by the EU," the statement said.

This decision takes effect on December 24.

"The EAER has further adopted the individual financial sanctions that the EU has imposed on Belarus as part of its sanctions regime against the country due to the situation there," it said.

Last Monday, the EU published its 15th package of anti-Russian sanctions, which include restrictive measures against a number of oil and LNG tankers. Furthermore, dozens of individuals and entities were added to the EU sanction lists.

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Belarus and Russia will combine efforts to develop automobile enterprises, Belarusian Industry Minister Alexander Yefimov said, as per Interfax.

"We are reaching agreement with our Russian colleagues and combining efforts to develop our automotive enterprises," Yefimov was quoted as saying by the state agency BelTA.

"For this, we need to unify the component base, parts that will be used in final assembly production facilities. We will focus closely on developing automotive-related initiatives," Yefimov said.

The Belarusian Industry Ministry earlier in December said that an agreement had been signed establishing unified approaches to developing both countries' automotive industries following negotiations between Yefimov and Russian Industry and Trade Minister Anton Alikhanov. No further details were provided.

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Saudi Arabia was the top destination for Russian sea-borne fuel oil and vacuum gasoil (VGO) exports in November, according to traders and LSEG data, as per Hydrocarbonprocessing.

Total fuel oil and VGO exports from Russian ports last month rose by 6% from October to about 4.26 MM tonnes (t), according to calculations based on LSEG data. Since the European Union's full embargo on Russian oil products went into effect in February 2023, Asian countries became the main destination for Russia's fuel oil and VGO supplies.

Direct fuel oil and VGO shipments from Russian ports to Saudi Arabia increased in November by 29% month-on-month to 0.85 MMt. Russian fuel oil and VGO loadings to India declined last month by 5% to around 0.47 MMt, while dark oil products supplies from Russian ports to China decreased by 25% to 0.32 MMt.

Fuel oil supplies to China are falling on an expected tax revamp, which would raise costs for imported oil products, according to market sources. China and India import straight-run fuel oil and VGO for refining feedstock pool as cheaper alternative to Urals crude.

Tankers with around 0.6 MMt of dark oil products from Russian ports are on their way signaling Singapore as destination, but some of those cargoes could end up also in China.

Singapore is the world's largest bunkering hub, and tankers often use it as way point on a long route to Chinese ports, especially cargoes moving via cape of Good Hope instead of Suez Canal. All the shipping data above are based on the date of cargo departure.

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China increased imports of Russian plastics and plastic products 7.44% month-on-month in monetary terms in November to $42.61 million, according to statistics from China's General Administration of Customs, as per Interfax.

Imports fell 3.3% year-on-year. Polyethylene worth $32.48 million was imported from Russia, up 11.5% MoM and 20.2% YoY; polypropylene imports stood at $6.3 million, down 8.5% MoM and 40.2% YoY, polystyrene imports stood at $17,700, down 37 times MoM and 9 times YoY and polyvinyl chloride imports were valued at $2.3 million, up 1.7-fold MoM and 2-fold YoY.

Imports of rubber, rubber products and their derivatives from Russia increased 3.4% MoM and 1.6-fold YoY, reaching $93.1 million. The majority of imports from Russia were synthetic rubbers, which accounted for $93 million.

Exports of plastics to Russia fell 11.2% MoM but rose 1.3% YoY, totaling $404.9 million.

China's revenue from the sale of polyethylene to Russia was $13.82 million, down 11.7% MoM and 21.6% YoY, polypropylene - $6.5 million (down 33% MoM and 47% YoY), polystyrene - $6.5 million (up 1% MoM but down 0.8% YoY) and PVC - $9.1 million (down 3.5% MoM and 52% YoY).

Exports of rubbers fell 12.8% MoM and 13.5% YoY, totaling $172.4 million. Of this, the majority ($118.5 million) came from tire supplies, down 14.3% MoM and 20.6% YoY. Conveyor belt exports also declined 12.4% MoM and 6.4% YoY to $7.5 million. Russian companies paid $9.4 million for synthetic rubber, up 1.5-fold MoM and 7.5% YoY, and $10.13 million for vulcanized rubber tubes and hoses, down 17.6% MoM but up 7.2% YoY.

China reduced its imports of Russian plastics and related products 2.1% in monetary terms in 11M 2024 to $428.4 million, while exports fell 2.3% to $3.97 billion. Imports of rubber, rubber products and their derivatives from Russia increased by 29.8% to $834.5 million, while exports fell 11.3% to $1.83 billion.

We remind, in the first three quarters of 2024, demand for polyethylene terephthalate (PET) pellets in China increased by 15% to 6.88 million tons, largely due to the fact that PET consumption in the beverage sector increased by almost 30% compared to January-September 2023.

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