China PVC Powder Exports to Increase in Sep
Introduction: PVC powder exports increased in August, primarily due to the uncertainty around the BIS certification extension during that month, which led to a concentrated delivery of export orders by the end of August. For September, the export volume is expected to rise further, driven by favorable export orders from August and September and reduced shipping costs.
PVC powder exports saw an MoM increase in August.
According to GACC, PVC powder exports reached 201.8kt in August, increased by 29.94% MoM, but down 25.03% YoY. From January to August, the cumulative export volume was 1,661.9kt, up 7.85% from the same period last year. The MoM increase in August was largely driven by the uncertainty surrounding the BIS certification extension, prompting domestic exporters to accelerate the delivery of previous orders.
India was still the main PVC powder export destination in August.
China’s PVC powder export destinations changed narrowly in August, with exports still concentrated in South Asia, Southeast Asia, Africa, and Central Asia. India remained the top destination, followed by Vietnam, Uzbekistan, Kenya, and Thailand, which together accounted for 70.23% of total exports (141.7kt). India continues to be China’s most important trade partner for PVC, with its procurement volume impacting China’s export market in August.
China’s PVC powder exports are expected to increase further in September.
Since mid-August, China’s PVC prices have hit relative lows, combined with weak domestic demand, so China’s PVC powder producers show a higher interest in exporting. Some Indian clients mainly engage in bargain-hunting, so China’s PVC powder producers received more export orders. Entering September, as domestic prices continued to fall, foreign buyers showed cautious sentiments. In mid-September, export orders decreased. In end-September, Formosa Plastics raised its export offers, so China’s PVC powder prices enjoy price advantages, leading to a marginal improvement in low-price orders.
Overall, export orders in August and September have increased compared to previous periods. Most orders received in late August are scheduled for delivery in September, and lower shipping costs have further boosted delivery enthusiasm. Based on data for pending export deliveries, the volume of undelivered orders has steadily decreased, suggesting that most orders are being delivered promptly. Therefore, it is expected that September’s PVC powder exports will exceed those of August.
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