Polyvinyl Chloride (PVC) prices declined to a multi-month low in March 2023 across the globe, with more drops in sight of the market players in the week ending March 24. The main factors for the PVC prices deterioration were long supply and weak demand. The weakening of the downstream construction and packaging sector more than expected due to a slowdown in the economic outlook caused downward pressure on the spot prices this month globally. Additionally, the steep fall in Crude Oil prices and the deepening banking crisis have diminished market confidence.

In the Asian market, PVC has shown a downward trend with the slump downstream momentum in March 2023, as ample availability of stocks and competitive offers pressured commodity prices. As a result, PVC inquiries were sluggish in the Indian domestic market, impacting the product price momentum. Moreover, PVC overseas offers from the Southeast Asian market amidst dampening demand also saw weak sentiments in March. India's import K67 fell by approximately 4% this month, while China and Southeast Asia K67 prices saw a loss of around 1% and 3%, respectively, compared to February 2023.

Meanwhile, the European PVC market witnessed a prolonged fall in March 2023, with a recent drop of 12% in the price trend in the week ending March 24. The prices tumbled in Europe due to weak demand from the downstream construction sector amidst the falling housing market of the region. The surge in interest rates and the cost-of-living crisis caused financial stress to the consumers of PVC in Europe. Turkey's import and local PVC market has not seen any improvement in the product discussions for April as well amidst abundant supplies, weak demand, and falling prices in Asian outlets. High inflation, coupled with the depreciation of the European currency against the US dollar, kept trading activity tied to basic needs only.

As per ChemAnalyst, the PVC price dynamics are projected to decline in the global market in April 2023, owing to the decline in the offers from the end-users and ample inventory availability. The downstream market is expected to remain weak, which might cap global cost hikes attempts in April.