China PVC Glove Industry Operating Rate Moved Up in May
Preface: In May, China’s PVC glove enterprises raised operating rates. However, some of them showed tepid purchasing interest amid ample feedstock inventory. PVC paste fundamentals may be tepid in the short term.
By late May, operating rates at domestic PVC glove manufacturers had increased compared to April. According to SCI’s monitoring of 20 sampled enterprises, large and medium-sized PVC glove manufacturers accounted for most active facilities, with over 400 production lines operating - an expansion from April.
China exports over 90% of its PVC gloves, with 45-50% historically destined for the U.S. Following Trump’s April announcement of reciprocal tariffs and subsequent Chinese countermeasures, exports to the U.S. were temporarily suspended. Sino-U.S. Geneva Trade Statement, released on May 12, provided phased tariff relief, enabling partial export recovery. Some manufacturers resumed deliveries of previously stalled orders and received new June-July contracts, leading to production increases at larger facilities. However, persistently low order prices prevented many small-to-medium enterprises from restarting production, resulting in only marginal industry-wide operating rate improvements by the end of May.
As for PVC glove materials, delivered prices of glove materials reached RMB 6,700-6,950/mt in end-May, up 1.11% from April. Despite supportive macro developments, subdued buying persisted due to high feedstock inventory at glove producers and lower import prices of glove materials. Thus, the overall transaction atmosphere remained lukewarm in May.
In June, China’s glove material prices may inch down.
As for the supply, China’s PVC paste industrial operating rate was 74.75%. No planned unit maintenance at micro-suspension PVC paste producers has been heard, so the supply pressure may persist. If soft transactions persist, the inventory pressure may increase further.
As for the demand, though PVC glove producers raised operating rates, glove product enterprises show limited interest in purchasing feedstock in June due to tepid product prices, ample feedstock inventory, and lower prices of imported glove products.
In the short term, calcium carbide prices may move sideways. Traders show passable delivery interest as calcium carbide prices hover at a 2-year low. Mainstream calcium carbide plants hold EXW prices stable. The cost may fail to support the PVC paste market.
China’s PVC paste glove material prices will possibly inch down in June.
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