Poly Vinyl Chloride (PVC) market participants are constantly approaching the resilient market situation across the globe by keeping the prices stable globally. The November PVC prices acquired a plunging margin state amidst inadequate demand from the downstream industries, and the trading atmosphere was relatively slow this week. Moreover, the elevation in the crude oil prices limited the operational rates, imposed a tightening of the supplies, and squeezed the demand-supply gap in the PVC industry significantly.

In a significant development, the rising competition for a share of the Brazilian PVC market has escalated to a global scale, with an increasing number of companies from the United States and Asia struggling to secure a portion of the country's PVC demand. The intensifying competition comes against the backdrop of economic woes affecting these regions, characterized by a notable decline in construction, infrastructure, and automotive production. The persistent influx of imports into Brazil has been a defining factor in this heightened competition. Import prices continue to exert downward pressure on local prices, thereby eroding profit margins for domestic producers.

In the first week of November, the spot export prices for US PVC saw a notable decline as the demand from the North American downstream industries was lackluster. Moreover, in response to the sharp and considerable drop in spot export prices compared to contracted prices, US buyers are now actively engaged in discussions regarding potential reductions in contract prices.

In the Asian region, the subdued macroeconomic conditions led to a deceleration in PVC spot trading as October ended on a bearish note. Domestic buyers were procured mainly based on necessity, underpinning a shift in focus towards international markets, notably in Latin America. Nevertheless, after this phase, buyers found the recent price offers from sellers for November shipments to be reasonable, prompting them to take aggressive restocking measures to counteract declining inventory levels.

China, in particular, felt persistent challenges within its PVC sector amidst a high level of pre-procured inventories. The subdued nation's construction sector weighed on the demand for PVC in the Chinese market. The rising interest rates have raised concerns in the market regarding its potential to exacerbate the challenges in the Chinese market shortly.

As per the ChemAnalyst, the PVC prices seem to be low amidst the dull downstream market situation in the Global market. The market participants are likely to struggle against the escalating input costs and low demand in the downstream segments.