PVC prices fall in China on weak demand; India maintains output levels

India's PVC demand is expected to reach around 6.43 million ton by 2030; manufacturing capacity was recorded at 1.75 million ton annually as of the latest data. During the FY24, actual production reached 1.47 million ton, reflecting a strong capacity utilisation rate of 90 per cent an indicator of efficient plant operations and stable domestic supply.

China's PVC production is expected to total around 21 million tons, with 66 per cent of it being consumed within the country.

PVC prices in the Asia Domestic China market have continued their downward trend, reflecting persistent weak demand across key consuming sectors. The price dropped from approximately $680/MT in January 2025 to around $620/MT by May 2025, marking a clear softening in market sentiment. This ongoing decline is primarily driven by sluggish activity in construction and infrastructure industries that are typically major consumers of PVC.

Looking at the historical pattern, PVC prices have been on a gradual decline since early 2023, when they were above $930/MT. A brief period of stabilisation was observed around mid-2024, with prices hovering near $770/MT in June 2024, but this was short-lived. Since then, the market has faced pressure from oversupply and lacklustre downstream demand. With no strong signs of demand recovery or stimulus in sight, PVC prices are likely to remain under strain in the near term. The EDC market has continued its downward trend since the beginning of 2025.

Figure 1: Sector-wise PVC consumption in India (in %)

Source: Alkali Manufacturers Association of India

A major factor influencing this trend is the continued weakness in the real estate sector, which typically drives around 70 per cent of total PVC demand. The slowdown in construction and infrastructure activity has directly impacted downstream consumption, contributing to softer market performance.

Fibre2Fashion News Desk (VK)