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The Asian PVC prices are experiencing a downturn in October 2024 following the Chinese holiday period. Demand is weakening, causing the earlier upward momentum in the spot market to fade. This week, PVC prices are dropping, driven by a weakening futures market and an oversupply situation. Manufacturers are increasing production rates, with many operating at full capacity, which is adding pressure on shipments. In response to rising inventories, dealers are lowering prices, leading to a decline in market offers.

On the demand side, downstream interest remains weak, with buyers focusing primarily on immediate spot needs and showing little interest in larger purchases. The overall market sentiment is sluggish, driven mainly by necessary transactions.

The feedstock prices don’t seem to be supporting the weakening prices of PVC. The Calcium Carbide market, a key raw material for PVC production, is showing fluctuating dynamics. After a rise in early October, prices are now falling, and with the softening PVC market, further price shifts in calcium carbide are expected.

Moreover, the Intra-Asia Container Index (IACI) is down by 15% in the first half of October, with spot rates on some intra-Asia routes continuing to fall significantly. (Drewry's Intra-Asia Container Index (IACI) tracks average shipping rates within key Asian trade routes. A recent drop in the index reflects reduced demand and excess shipping capacity, leading to lower container transport costs across the region in October 2024.)

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PVC supplies are expected to stay high in the next few weeks, at least, with inventories elevated at both enterprise and market levels. Costs, particularly for calcium carbide, are not providing much support as prices stay flat. The weak performance in the PVC futures market is also reducing confidence in the spot market.