Market Update: PVC Paste Resin Prices Show Modest Recovery in July 2025

From July 1 to July 28, 2025, China's PVC paste resin market experienced a modest yet steady price rebound. According to tracked industry data, the average monthly price for glove-grade PVC paste resin reached RMB 6,474/ton, marking a 0.90% increase (up RMB 58/ton) from the previous month. Meanwhile, leather-grade resin averaged RMB 6,436/ton, rising by 1.08% (up RMB 69/ton) month-on-month.

Market Overview

July’s market dynamics were primarily driven by supply-side fluctuations rather than changes in macroeconomic indicators. In early July, prices remained weakly stable. Though some Northwest producers initiated maintenance, leading to initial price hikes of RMB 50–100/ton, the abundant upstream inventory kept most participants cautious. Downstream demand remained soft, and the market was largely in a wait-and-see mode.

By mid-to-late July, tightening inventories at several producers, coupled with the staggered implementation of upstream maintenance, gradually eased the supply-demand imbalance. Even as terminal demand stayed tepid, midstream traders slightly increased their purchasing activity. The supply-side contraction supported a mild rally, with producers raising offers and the overall market tone warming.

Supply Analysis

Production levels dipped slightly compared to June. While some previously idled units in Shandong resumed operation, ongoing maintenance in Ningxia, Qinghai, and Inner Mongolia offset these gains. As of this report, China’s total PVC paste resin production capacity stands at 1.615 million tons/year, with estimated July output at approximately 94,400 tons. The industry's operating rate was around 70.14%.

Demand Conditions

Downstream demand remained cautious throughout the month. Most buyers maintained a just-in-time procurement approach, and no significant stockpiling behavior was observed. Terminal production levels stayed modest, limiting upward momentum.

Raw Material Costs

Calcium carbide, the primary feedstock, experienced a broad price decline during July. As a result, PVC paste resin producers saw limited cost pressure, though weaker cost support offered little stimulus to market sentiment.

Regional Prices (As of July 28)

• Glove-grade Resin:

  • East China: ~RMB 6,750/ton (delivered, tax-included)

  • South China: ~RMB 6,800/ton

  • North China: ~RMB 6,500/ton

• Leather-grade Resin:

  • East China: ~RMB 6,750/ton

  • South China: ~RMB 6,800/ton

  • North China: ~RMB 6,450/ton

Note: Prices are for reference only due to flexible market negotiations.

Market Outlook for August

Supply:

Some Inner Mongolia-based producers may resume operations in August, while a few units remain under maintenance. Overall, operating rates may edge higher, and market supply is expected to increase slightly.

Raw Materials:

Calcium carbide prices are expected to weaken further amid dual pressure from supply-side sales and downstream maintenance. However, cost-side volatility may emerge if certain producers halt operations in response to lower profitability.

Demand:

Demand-side prospects remain subdued. Domestic buyers are unlikely to increase purchases amid hot weather and weak operating rates. Export performance may also underwhelm, limiting any robust recovery in overall consumption.

Conclusion

While July saw mild price gains driven by supply-side tightening, the fundamentals for August remain mixed. Weak demand, limited cost support, and potentially rising supply may lead to market stagnation or a slight price correction. The PVC paste resin market is expected to trend sideways, with a possible decline of RMB 30–50/ton.

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