Market Overview
In May 2025, China's paste PVC resin market faced continued downward pressure as demand weakness and stable supply dynamics shaped a bearish tone across the country. According to the Commodity Market Analysis System of SunSirs, the average domestic market price for paste-grade PVC resin ranged from 8,300 to 8,500 RMB/ton by the end of May, marking a 2% to 3% decrease compared to early-month levels.
Supply and Demand Dynamics
Throughout the month, major producers maintained relatively high operating rates, resulting in sufficient supply in the market. However, downstream buyers remained cautious due to sluggish terminal demand and uncertain macroeconomic conditions. Transactions were mostly on a need-only basis, and manufacturers were reluctant to build inventory. Key application sectors such as artificial leather, gloves, wall coverings, and floor materials experienced slow sales, further dragging demand.
Cost Support Remains Thin
From a cost perspective, raw material prices offered little support. The price of calcium carbide, the key feedstock in the production of PVC resin, remained at a low level, while ethylene-based PVC resin also continued its weak trend. These factors limited any potential upward cost-push for paste PVC.
Performance of Downstream Sectors
The weak performance of downstream industries was a key factor contributing to the market's sluggishness. End-users, particularly in the footwear, decorative materials, and synthetic leather sectors, faced continued pressure from slow orders and tight cash flows. As a result, many processors chose to reduce production loads to avoid overstocking. Export channels also remained subdued amid weak overseas demand.
Market Outlook
Looking ahead, industry insiders expect China’s paste PVC resin market to remain in a weak consolidation phase in the short term. Without a significant recovery in domestic consumption or a boost from exports, prices are unlikely to rise significantly. Participants are advised to monitor inventory adjustments and potential policy signals that could influence downstream demand recovery.
