Morning Briefing - 28 May 2025
CommoPlast
Morning Briefing
28 May 2025
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Indian Buyers Showed Strong Acceptance for Higher PVC Prices
A major Taiwanese PVC producer has reportedly sold out its June allocation to India after raising prices by $20/ton in the previous trading session, signalling robust market acceptance of higher pricing levels.
Market participants attribute this bullish momentum to increased interest in non-Chinese cargoes, as Indian buyers actively steer away from Chinese-origin PVC ahead of the Bureau of Indian Standards (BIS) certification deadline set for 24 June. The majority of Chinese producers are yet to obtain the required BIS approval, which is expected to curtail their ability to export to India in the short term.
Nonetheless, uncertainty looms over the potential postponement of the BIS mandate by Indian authorities. Market sources are closely monitoring developments, particularly as the onset of the monsoon season—typically associated with softer construction demand—could temper overall buying appetite in the weeks ahead.
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Malaysian PP, PE Markets Declined
A major Malaysian producer has issued another round of price cuts for PP and PE offers to the domestic market, extending a downward trend into its second month. The adjustments reflect persistently soft demand conditions and a strengthening Malaysian Ringgit (MYR) against the US dollar, both of which continue to weigh on market sentiment.
Despite the steeper-than-expected price adjustments, overall market reaction has been subdued. Domestic buyers remain cautious amid a confluence of global economic headwinds and volatile trade policies, both of which continue to undermine confidence.
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