Mexico initiates antidumping investigation against US PVC

The Mexican government has decided to initiate an antidumping investigation into imports of suspension polyvinyl chloride from the United States, according to an official statement released on April 28.

The investigation was initiated at the request of Mexichem, a local producer that claims that unfair trading practices have adversely impacted its market share.

For US PVC, this would mean an additional barrier to exports, which are already restricted by tariffs in Europe, in addition to antidumping investigations in India and Brazil. Meanwhile, on the West Coast of South America, prices from China continue to be heard as increasingly competitive.

"They wouldn't be able to place an order anywhere," a first trader said about the expectations of increasing restrictions.

PVC export prices have been decreasing amid oversupply, restricted export options, and low global demand. Platts, part of S&P Global Commodity Insights, assessed US spot export PVC prices at $645/mt FAS Houston on April 23, down $40/mt from Dec. 18, the last 2024 price assessment.

"The PVC market has collapsed, and I don't know how we can keep this business. It is a very hard time," a second trader said. "If Mexico starts antidumping against US origin, it will be hugely impacted," the same source added.

Less options in Latin America

A greater restriction on US PVC in Mexico would mean a more difficult scenario for exporters to Latin America, considered a key market for the product under current market conditions.

"There are upcoming expansions from China, so they will try to export their volume to Mexico as much as they can," the first trader said.

In WCSA, competition with Asian material is also a concern for US exporters. Market participants believe that PVC from China may continue to become competitive.

Platts assessed spot PVC at $725/mt CFR WCSA on April 23, down $10 on the week, above a bid heard at $720/mt, within a range of trades heard at $720-$730/mt, below offers heard at a minimum of $740/mt for US-origin material, above offers heard at below $700/mt for China-origin material, pending corroboration of market activity at lower levels.

In Brazil, an antidumping investigation into US PVC is also underway, with a decision expected in June. Local market participants mentioned the possibility that the duty, currently at 8.2%, may be raised to 14%. There are also rumors of an increase to 21.6%, the same level as China.

A trader based in Brazil said that if this happens, China would be more competitive than the US in the Brazilian market. A second local trader disagreed. "China has been out of the market for years; the level of antidumping completely makes the business unviable," the source said, adding that the same would happen to the US.