ChemInsight 360

PVC (polyvinyl chloride) is the most policy-sensitive bulk resin in the world because it is made two completely different ways. China — half the planet’s capacity — runs predominantly on coal via calcium carbide, while the marginal new tonne globally is built on oil-derived ethylene. In 2026 those two routes have been pulled in opposite directions at the same time, and that is the entire story of the sector right now.

Asia’s petrochemical basket repriced lower in near-perfect synchrony last week, and the cause sat upstream of any single product. With the Iran–US shipping agreement taking effect, the geopolitical risk premium embedded in crude oil deflated and as crude and naphtha gave way, the cost floor under the entire complex went with them.

We were first to flag the R32 bull across Q4 CY25–Q1/Q2 CY26 on Chinese price discipline and tight export volumes — Navin Fluorine was the standout beneficiary. This note shows the floor under the correction, and the next leg up.