China’s PVC Exports Bounce Back in May Despite Tax Rebate Removal

China’s suspension PVC (S-PVC) exports recovered strongly in May, rebounding from the sharp slowdown seen in April. At the same time, imports fell to a new record low, highlighting China’s growing self-sufficiency in PVC production and its expanding influence in global trade flows.

The latest trade data indicates that Chinese producers continue to rely heavily on export markets to manage domestic oversupply, even after the withdrawal of the country’s export tax rebate.

Exports Climb to One of the Highest Levels on Record

China exported more than 380,000 tons of S-PVC in May, representing an increase of around 35% from April and approximately 6% higher than the same month last year.

The May figure ranked among the strongest monthly export performances ever recorded, trailing only the exceptionally high shipment volumes seen in February and March.

Those earlier months experienced a surge in activity as buyers rushed to secure cargoes before the removal of China's 13% export tax rebate, while geopolitical uncertainties also encouraged additional trading activity.

The strong recovery in May suggests that although the rebate withdrawal has increased export costs, it has not significantly reduced China's need to place material into overseas markets. Domestic demand remains relatively weak, while supply continues to exceed local consumption requirements, making exports an important outlet for producers.

Export Revenue Remains Strong

In addition to higher shipment volumes, export earnings also improved significantly during May.

The total value of China's S-PVC exports exceeded $308 million, rising around 28% from April and 36% compared with the previous year. This marked one of the strongest monthly export revenue figures seen in recent years.

Higher export prices played a key role in supporting revenues. Although export volumes in May remained below the peak levels recorded in February, stronger pricing helped offset the difference.

Market prices remained elevated due to residual premiums that developed during earlier geopolitical disruptions, allowing exporters to generate higher earnings despite shipping lower volumes than at the beginning of the year.

India Remains the Largest Export Destination

India continued to be the leading destination for Chinese PVC exports in May.

After reducing purchases during April, Indian buyers returned more actively to the market and accounted for roughly 36% of China's total S-PVC exports during the month. The rebound in Indian demand was a major contributor to China's stronger export performance.

Southeast Asia also remained a key outlet for Chinese material. Vietnam represented approximately 10% of total exports, while Indonesia accounted for around 5%, reinforcing the region's importance for Chinese PVC suppliers.

China's Role in Global PVC Trade Continues to Grow

The latest figures highlight how China's PVC industry continues to evolve. While imports have fallen to minimal levels, export volumes remain robust as domestic producers increasingly look overseas to balance supply and demand.

Despite policy changes and higher export costs, Chinese suppliers have demonstrated their ability to remain competitive in international markets. With domestic supply remaining abundant and demand growth limited, exports are expected to continue playing a critical role in supporting the country's PVC sector in the months ahead.

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