In the last week of January 2025, polyvinyl chloride (PVC) prices in Asia and the United States exhibited stability amidst varied market conditions and influencing factors.

In Asia, PVC prices experienced mild fluctuations, with an initial upward trend at the beginning of the week as some manufacturers raised quotations. This optimism was driven by modest gains in the futures market and earlier price adjustments. However, mid-week saw a shift as crude oil prices began fluctuating and eventually declined, impacting the futures market negatively. By the end of the week, PVC prices in China stabilized.

Supply and demand fundamentals in the Asian PVC market remained weak. Manufacturers maintained stable operations without significant changes in supply pressure, while downstream demand showed signs of tapering off ahead of the Chinese New Year holiday. Spot transactions dominated procurement activity, but buyers were less enthusiastic about inquiries, resulting in a sluggish PVC market atmosphere.

Upstream, calcium carbide prices remained stable throughout January, providing some support to PVC prices by preventing sharper declines. However, this stability could not overcome the broader challenges of weak demand and resistance to high-priced goods. As downstream procurement peaked and then began winding down, caution among buyers further limited any upward momentum in PVC pricing. It has been noted that while futures market activities and policy factors helped sustain prices temporarily, the fundamental weakness in the spot market points to limited growth potential in the near term.

In the United States, PVC prices also held steady, even as upstream ethylene prices saw an uptick and West Texas Intermediate (WTI) crude oil futures rose to around USD 73.4 per barrel recently. Despite this recovery, crude oil prices remained near a two-week low due to uncertainties stemming from President Donald Trump’s proposed tariffs on imported steel, aluminum, and copper. These measures raised concerns about their potential impact on global commodity demand, adding volatility to the PVC downstream market sentiment.

Severe winter weather further complicated the U.S. market, disrupting shipping operations along the Gulf Coast. Ports in Texas and Louisiana, including Houston, Galveston, and Freeport, were closed to marine traffic starting January 20. Closures extended to the Sabine-Neches Waterway and Lake Charles, affecting access to major refineries and export terminals. Port Houston’s facilities, including eight public terminals on the Houston Ship Channel, remained closed lately.

Despite these logistical challenges, steady downstream demand and stable production helped maintain PVC price stability in the U.S. Market participants noted limited price volatility and anticipated easing of disruptions as ports resumed operations.

As January concludes, both the Asian and U.S. PVC markets demonstrate resilience, navigating mixed dynamics shaped by upstream costs, geopolitical factors, and weather-related disruptions. As per ChemAnalyst, the PVC market outlook remains stable but cautious, with downstream market trends closely tied to broader macroeconomic and supply chain developments.