China PVC export prices continue to fall, nearing key $800 FOB mark

China’s PVC export market has extended its downward trend for the fourth straight week, with ethylene-based K67 prices slipping close to the $800 per ton FOB level—seen by many as a critical psychological benchmark.

This decline follows a strong rally that began in early March, when geopolitical tensions and disruptions in energy supply chains drove prices sharply higher. During that period, ethylene-based PVC export prices surged significantly, reaching their highest levels in nearly two years.

Price correction gains momentum

The market began to shift in mid-April as the gap between ethylene-based and acetylene-based PVC widened beyond typical levels. While both segments had risen earlier, acetylene-based material saw comparatively smaller gains, leading to an unusually large price premium for ethylene-based PVC.

Under normal conditions, the price difference between the two variants remains relatively narrow. However, during the recent rally, this spread expanded sharply, prompting suppliers to reduce prices in order to remain competitive and attract buyers. Although the gap has started to narrow, it still remains higher than usual.

Over the past four weeks, ethylene-based PVC prices have declined by around 15%, while acetylene-based material has dropped by roughly 13%. Despite this correction, current price levels are still noticeably higher than those seen before the rally began.

Market sentiment weakens

Industry participants point to softer upstream costs and changing market sentiment as key reasons behind the recent decline. The earlier price surge was largely driven by rising crude oil costs, which increased production expenses for ethylene. However, expectations of easing geopolitical tensions have reduced upward pressure on prices.

Producers also noted that while some production facilities remain offline, delays in maintenance at other plants have slightly increased overall supply. At the same time, downstream demand remains moderate, although lower prices have started to improve export inquiries.

Overall, the market appears to be stabilizing after a period of sharp volatility, with prices adjusting as supply conditions and sentiment continue to evolve.

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