China’s PVC market edged lower in the week ending 18 September 2026, snapping a five-week rally. A sharp regulatory crackdown on coal futures dismantled cost support for the carbide route, while coastal ethylene-based producers remained trapped in steep negative margins against a resistant downstream sector.
Following Wednesday’s clean sweep, Shenhua Baotou Coal Chemical Co. lifted reserve thresholds across all prime grades, triggering severe downstream resistance that halved overall platform conversion to 50.8%.
That standoff is shaping up as the market's real test. International suppliers have little reason to give ground while buyers elsewhere in the region are absorbing higher prices without much restraint.