Morning Briefing - 28 Marc. 2025

CommoPlast

Morning Briefing

28 March 2025

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Chinese PVC market rebounded on restocking activities

The Chinese PVC market sustained its upward momentum for a second consecutive week, driven by a rebound in purchasing activity across both domestic and export segments. A stronger performance in key futures contracts on the Dalian Commodity Exchange further reinforced the market’s recovery.

Notably, local converters—particularly in the pipe sector—resumed restocking after weeks of hesitation. The last comparable surge in buying interest occurred in late December 2024, when prices plunged to historic lows.

On the export front, PVC offers rose by $2-5/ton from the previous week, with South Asian buyers leading the pace in transactions. While market sentiment has improved amid expectations of stronger demand, supported by seasonal factors and heavy maintenance schedules in April, Chinese suppliers remain cautious. Rather than holding back inventory in anticipation of further price increases, sellers focused on destocking.  

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 Slower offtake rates for Saudi PE shipments in Vietnam

At least three Saudi Arabian producers have set final PE prices for April-loading shipments to Vietnam on diverging trajectories, despite shared concerns over tight availability. While one producer has applied discounts of $20–30/ton, others have largely maintained initial offers, with some grades even seeing price increases.

Amid soft domestic market and the sharp depreciation of the Vietnamese Dong, a number of buyers decided to source locallised cargoes to avoid currency exchange risks. Whether the subdued offtake will offset the prevailing supply tightness remains uncertain.

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