PVDF Prices Rise in the USA and Europe But Fall in Asia in May 2023; Why?

The global Polyvinylidene Fluoride (PVDF) market experienced a variety of trends in May 2023, with prices falling in Asia but rising in Europe and the United States. This situation occurred in the United States and Europe as a result of increased demand for the product and a disrupted supply chain. In contrast, the market in Asia was driven by high supply and low demand for the product from the downstream construction industry.

In Asia, the prices of PVDF witnessed a decline, particularly in the Chinese market, and it dropped by approximately 15% in May 2023. This decrease was attributed to sufficient supply surpassing the low demand in the country. The downstream construction industry exhibited low demand for the PVDF during this period, as construction activity in China was moderate. According to the National Bureau of Statistics, the Chinese construction PMI decreased from 63.9% in April 2023 to 58.2% in May 2023. Nevertheless, the Chinese economy was striving to recover, and construction and consumer goods experienced significant weakness, as buyers focused on maintaining optimal inventories and procuring materials only when necessary.

In Europe, the price of PVDF gained momentum in May 2023 due to high demand from the downstream solar panels and turbines industry. PVDF is extensively used in the production of solar panels and wind turbines due to its exceptional properties, including resistance to UV radiation, weathering, and corrosion. With governments and organizations prioritizing renewable energy initiatives, the demand for PVDF in this sector steadily rose. However, the supply chain in Europe was disrupted by the ongoing conflict in Ukraine, leading to increased material costs and price pressures. Manufacturers and suppliers encountered challenges in meeting the demand due to transportation delays and cross-border restrictions, potentially causing delays and higher costs for PVDF and its derivatives. Moreover, the construction industry in Europe remained stable to low, facing the impact of rising interest rates and higher factor costs, further hindering manufacturing activities in the region.

In the US market, the price of PVDF increased during May 2023 due to limited supply and the product's growing popularity across various sectors. Additionally, high freight rates resulted from uncertainty at the West Coast port and drought conditions at the Panama Canal. The higher inflation rate in the country also contributed to the upward price trend for PVDF.

ChemAnalyst predicts that the price of PVDF may continue to increase in the second half of June 2023 on the back of an expected increase in demand for the product from the downstream construction and automobile industry. The construction sector may gain momentum in the upcoming month owing to the hit of seasonal demand in summer.