PVC (Polyvinyl Chloride) prices in Europe saw an upward movement during the second week of February 2025, while Asian markets continued on a steady incline. The price surge in both regions was supported by improved market sentiment and stable supply-side conditions. In contrast, U.S. polymer markets remained largely unchanged amid static crude oil prices.

The European PVC market experienced a reversal from its previous decline, buoyed by improved trading activity and a gradual increase in operating rates. Manufacturers that had previously reduced production costs have now increased them slightly, leading to a modest rise in operational levels. This shift is attributed to stronger demand and improved sentiment in the spot market. While social inventories continued to decline due to increased transaction volumes, the overall supply in the market remains ample given the previously high inventory levels.

Similarly, in Asia, the PVC spot market showed signs of recovery, primarily driven by the futures market. Market confidence strengthened as trading volumes picked up, supporting a gradual price increase. However, the market participants caution that the fundamentals of the PVC market still lack sustained improvement momentum, and the extent of the price increase should be approached with caution.

On the cost front, calcium carbide, a key raw material for PVC production, remained stable last week. Market prices have entered a bottoming stage, with no significant weekly fluctuations. Post-holiday demand from downstream sectors provided a moderate boost, creating a ripple effect that contributed to PVC’s price rebound.

Conversely, U.S. PVC prices remained static, mirroring the stability of crude oil prices. West Texas Intermediate (WTI) and Brent Crude oil stood firm at USD 70.74 and USD 74.74 per barrel, respectively. Global oil prices remained unchanged following three consecutive weeks of reductions, fueled by expectations of increasing fuel demand and delays in U.S. trade tariffs, which helped alleviate concerns over an imminent trade war.

While the short-term outlook for PVC prices in Europe and Asia remains positive due to improving sentiment and trading activity, analysts highlight that market fundamentals remain fragile. Supply remains ample, and inventory drawdowns are occurring at a slow pace. As the market stabilizes post-holiday, downstream procurement is expected to return to rational levels, potentially capping further price gains. Industry participants remain cautiously optimistic about the trajectory of PVC prices in the coming weeks.

As per ChemAnalyst, In the coming weeks, PVC prices in Europe and Asia are expected to maintain their upward momentum, albeit at a moderated pace. The European market may see continued support from firming demand and improved trading activity, but the ample supply could limit significant price hikes. In Asia, the futures-driven sentiment is likely to persist, sustaining price stability or slight gains, though cautious buying behavior from downstream industries may prevent any sharp increases. The U.S. market is anticipated to remain stable due to static crude oil prices and balanced supply-demand fundamentals.