Southeast Asian PVC Prices Reach Multi-Month Peaks as Demand Remains Uneven

Domestic PVC markets across Southeast Asia continued to move higher in November, supported by firmer import offers and rising replacement costs. Local prices recovered most of the losses recorded in early October, with weekly assessments in Vietnam, Indonesia and the Philippines reaching their highest levels since late May. In Thailand, the midpoint of domestic PVC prices climbed to approximately a five-month high.

Despite the firmer pricing trend, demand conditions remained inconsistent across the region. Indonesia reported comparatively strong buying interest, while buyers in Thailand and Vietnam continued to exercise caution. Higher resin prices and weak downstream consumption discouraged inventory accumulation, even as suppliers maintained expectations for further increases.

Demand Conditions Differ Across Regional Markets

PVC demand across Southeast Asia showed varying degrees of improvement, with stronger buying activity in Indonesia contrasting with more restrained purchasing in other markets.

A source at an Indonesian producer described domestic demand as “quite strong,” indicating relatively favorable purchasing conditions.

In Vietnam, a converter acknowledged a slight improvement in recent demand but noted that market conditions remained moderate and were not stronger than during the same period last year. The converter stated, “With PVC prices already at elevated levels, we prefer to purchase on a need basis rather than build up stocks.”

Thailand continued to face weaker downstream demand due to seasonal conditions. A local converter said she was not planning additional purchases, citing poor demand during the rainy season, which was expected to continue until mid-to-late November. She added, “We opt to maintain a wait-and-see stance until demand conditions improve.”

Rising Replacement Costs Support Domestic PVC Prices

Domestic PVC prices generally maintained their upward movement over the past month, driven by higher import replacement costs and elevated upstream values. Firmer import offers enabled local producers and distributors to strengthen their pricing positions.

Energy and feedstock costs also remained relatively high, providing some production cost support to regional manufacturers despite the recent sharp correction in crude oil futures.

However, the difference between sellers’ firm offers and buyers’ limited purchasing appetite remained pronounced. Elevated PVC prices continued to discourage stock building, while weak seasonal demand kept Thai converters cautious.

Cost Support Outweighs Demand Recovery

The ongoing increase in Southeast Asian domestic PVC prices appears to be driven primarily by higher costs and firm supplier offers rather than a substantial recovery in downstream consumption.

Although Indonesia’s stronger demand provides some regional support, buying interest in Thailand and Vietnam remains restrained. Consequently, the current upward trend does not yet indicate a broad-based improvement in Southeast Asia’s PVC market fundamentals.

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