Monthly Report: PVC Paste Resin Market Remains Under Pressure as Fundamentals Weaken Overview

In June 2025 (June 1–June 27), the domestic PVC paste resin market continued its downward trajectory, driven by limited demand and weak cost support. According to Baichuan Yingfu data, the average monthly price of glove-grade PVC paste resin fell to RMB 6,416/ton, a decrease of RMB 241/ton (3.62%) from the previous month. Leather-grade resin averaged RMB 6,367/ton, down RMB 268/ton (4.04%).

With no significant macro policy guidance, the market returned to being fundamentally driven. Ample supply, weak demand, and reduced raw material cost support led to continued price declines. While some producers flexibly lowered prices to promote sales, others maintained firm offers. Trading activity was primarily conducted through negotiated transactions, with a cautious sentiment prevailing due to persistently high inventories.

Downstream demand remained limited due to the ongoing seasonal slowdown and high temperatures in parts of the country, restricting operating rates for glove and leather product manufacturers. Most downstream buyers adopted a just-in-time replenishment strategy. Export orders remained focused on fulfilling previous contracts, with few new deals signed. Overall trading activity fell short of expectations.

Supply Side
No major new plant shutdowns occurred this month. However, previously shut units have not resumed production, and domestic supply remains ample. As of the end of June, China's total PVC paste resin capacity stood at 1.615 million tons/year, with estimated monthly output of around 96,700 tons. Industry operating rates averaged 71.86%.

Demand Side
Demand continued to show weakness throughout the month. Most downstream enterprises maintained low operating rates, with limited procurement interest and lackluster export demand.

Raw Materials
The carbide market also weakened in June, further eroding cost-side support for PVC paste resin producers.

Prices by Region (as of June 27)

• East China: glove-grade RMB 6,500/ton, leather-grade RMB 6,500/ton

• South China: glove-grade RMB 6,500/ton, leather-grade RMB 6,500/ton

• North China: glove-grade RMB 6,300/ton, leather-grade RMB 6,200/ton
  (Prices include tax and delivery; for reference only due to market flexibility.)

Market Outlook

• Supply: Some producers in Ningxia and Inner Mongolia are expected to initiate maintenance in July, while certain plants in Henan may resume operations. As a result, overall output may slightly decline, easing market oversupply.

• Raw Materials: Carbide supply is likely to increase, while demand may fall due to maintenance in downstream sectors. This may further weaken cost-side support for paste resin producers.

• Demand: No significant improvements are expected. High summer temperatures continue to suppress operating rates among downstream manufacturers. Export orders are anticipated to remain moderate. The market will largely rely on essential demand.

Conclusion
Despite continued pressure from high inventories and weak fundamentals, July may offer a mild rebound due to scheduled maintenance and slight supply tightening. However, demand remains sluggish and cost-side support limited. As such, any price recovery is expected to be modest, with a projected increase of RMB 50–200/ton.

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