At the end of Q1 2025, Chlorinated polyvinyl chloride (CPVC) prices in the U.S. continued on a downward trajectory, influenced by subdued procurement activity and cautious market sentiment. While demand from the construction and chemical sectors showed signs of improvement, suppliers began adjusting prices downward from mid-March to maintain competitiveness and manage inventories in light of persistent policy uncertainties and macroeconomic concerns.

Export demand US originated CPVC remained weak, particularly from Canada and Mexico. Across Mexico, competitively priced Chinese-origin cargoes, supported by favorable freight rates from Asia to the North American West Coast, gained preference over U.S. material. This external pressure, combined with declining feedstock costs, further impacted on market prices. Feedstock ethylene dichloride (EDC) prices fell by approximately 28% in February and remained stable through March, adding to the bearish pricing sentiment for CPVC.

Producers of CPVC continued to operate at disciplined run rates to avoid inventory accumulation. Total U.S. production of major plastic resins stood at approximately 8.0 billion pounds in February, indicating a 3.8% month-on-month decline, as per American Chemistry Council (ACC), A further drop is anticipated in March 2025 as producers continue to maintain disciplined run rates. Despite this, CPVC availability remained sufficient due to backlogs from earlier months and uninterrupted logistics, ensuring sufficient circulation, supported the absence of any significant logistical disruptions.

Trading activity was limited in March as the U.S. government introduced a new round of tariffs, further adding to already volatile environment in international trade flows. Domestic sentiment weakened as key trading partners namely Mexico increasingly diversified their sourcing, notably toward China amidst competitive freight charges witnessed from Asia to North American West Coast which fell by 21% as March 2025 came to close. Procurement strategies shifted toward inventory management, with both buyers and sellers avoiding aggressive restocking or forward buying and focusing only on filling in short term supply gaps.

Nevertheless, underlying demand fundamentals for CPVC remained relatively firm, supported by seasonal strength in the construction sector. U.S. construction spending  witnessed a rise of  0.7% in February, while housing starts increased by 11.4% as per US Census Bureau. Additionally, construction spending within the chemical sector saw a 2.1% uptick, data from ACC showed. These indicators contributed to consistent CPVC consumption in core end-use markets, even as broader market dynamics remained uncertain.

As per anticpation, prices of CPVC across the US market are likely to remain relatively stable in the near term. Shifting political dynamics may prompt suppliers to hold prices firm and limit negotiation flexibility. As Q2 begins, the market is anticipated to move toward equilibrium, with U.S. CPVC producers and suppliers focusing on clearing backlogged inventories while maintaining moderate to low run rates. A potential factor that could influence international demand is the 90 day suspension of newly implemented tariffs, announced on April 9, 2025, which may temporarily ease trade conditions and improve buyer sentiment abroad. Domestically, the CPVC demand is projected to strengthen, supported by seasonal homebuilding activity, which is expected to drive an increase in order volumes over the coming weeks.