At the start of March 2025, the global Polyvinyl Chloride (PVC) market saw a mixed-price trend driven by strong future performance. Inventory levels fluctuated as post-holiday demand rebounded in Asia, but rising production rates added supply pressure. In the U.S., high stockpiles and weak real estate demand limited PVC price hikes, while European costs rose due to higher ethylene prices since mid-week of February 2025. In Asia, supply and demand are expected to improve in March, though surplus material may cap gains. Market conditions remain mixed, with regional variations influencing PVC pricing.

The Asian PVC spot market maintained stability in the last week of February 2025, demonstrating improved performance. As Ethylene prices consistently stabilized and the PVC futures market drove this trend, the connection with the spot market became evident, leading to continued price hikes. However, during the second week of the month, prices decreased without the backing of supply and demand. From the middle of the month to the month's conclusion, the market stabilized, supply and demand stayed fairly constant, and prices remained steady and moderate. The weak performance of calcium carbide market prices since February has constrained the upward trend of PVC.

On the demand side, the rise in downstream operating rates is typical. On one side, there is pressure from inventory, while on the other side, the restart of operations for hard plastics is sluggish, with downstream production rates typically under 50%. Regarding exports, it demonstrates significant inflexibility. In some measure, it has eased the problem of low demand.

The US PVC prices rolled over in the last week of February 2025 due to moderate supply and weak downstream demand. Stock levels are at their highest since the pandemic, and the real estate sector is demonstrating minimal signs of recovery.  Even with the elevated inventory levels, the market participants anticipate a resurgence in demand in the first quarter, partly due to an expected increase in building activity as spring approaches in March 2025.

At the end of February 2025, European PVC costs increased. In light of the increase in the ethylene contract and considerably higher energy expenses, the price hikes occurred at a level exceeding the corresponding costs associated with the rise in ethylene. Seasonal influences provided a minor boost to demand, but could not counteract the ongoing fragility of the construction sector. In March, the contract for ethylene increased. Significant price hikes for PVC are thus unlikely. For the time being, this is improbable to change with the onset of the maintenance season in Europe, which involves a well-balanced supply condition in the market.

As per ChemAnalyst, In the Global PVC market, both supply and demand are expected to improve in March. However, the abundance of supply materials will surpass the rise in demand in the APAC region.