For the Quarter Ending September 2024
North America
In Q3 2024, the North American Poly Vinyl Chloride (PVC) market witnessed a notable decline in prices, predominantly driven by a confluence of factors. The market faced a challenging quarter marked by decreased demand, amplified by a slowdown in the construction sector and subdued export markets.
Additionally, lower feedstock costs and a surplus of supplies contributed to the downward pressure on PVC prices. The region experienced supply chain disruptions due to hurricanes and plant shutdowns, further straining market dynamics. Transitioning to the USA, the market exhibited significant fluctuations, a 2.4% increase from the previous quarter in 2024.
However, the price comparison between the first and second half of the quarter revealed a substantial 11% drop, emphasizing the volatility in pricing trends. Despite these challenges, the quarter FOB Texas ended with PVC Pipe Grade priced at USD 708/MT, reflecting a persistently negative pricing environment. Seasonality and market correlations underscored the prevailing downward sentiment, indicative of a challenging period for the PVC market in the USA.
Asia
In Q3 2024, the Poly Vinyl Chloride (PVC) market in the APAC region experienced a period of decreasing prices, with Japan seeing the most significant changes. The overall market was influenced by various factors, including disrupted trade routes, geopolitical tensions, and muted demand. Supply chain disruptions, particularly delayed export demand, contributed to the challenging environment. Upstream price stability and a dip in crude oil costs further impacted PVC pricing in the region. On the cost side, upstream Ethylene prices offered moderate support, resulting in an average level of cost pressure. However, PVC performance in the futures market weakened in the later stages, which affected confidence in the spot market and contributed to a generally bearish outlook across the Asian region. Japan witnessed the most notable price fluctuations, with prices increasing by 1% from the previous quarter, indicating a continued downward trend. The second half of the quarter saw a 3.9% decline compared to the first half. The quarter ended with PVC Suspension Flexible Grade K67 priced at USD 710/MT FOB Tokyo in Japan. These changes reflect a consistently negative pricing environment, characterized by ongoing challenges and uncertainty in the PVC market.
Europe
In Q3 2024, the European Poly Vinyl Chloride (PVC) market witnessed an overall trend of increasing prices, influenced by several significant factors. Market dynamics were primarily shaped by stagnant demand, high supply levels, and fluctuating upstream costs. These elements created a challenging environment, leading to pricing pressures. Germany, in particular, experienced the most significant price changes, with a notable increase in PVC prices. This surge can be attributed to constrained supplies, ongoing supply chain disruptions, and reduced production rates. The market also faced challenges from port strikes and floods, impacting operations and contributing to the price volatility seen in the region. The quarter-on-quarter change of 1% indicated a slight positive shift. The comparison between the first and second half of the quarter, with a 3.2% price difference, highlighted the evolving pricing dynamics within Q3 2024. The quarter-ending price of USD 964/MT for PVC Suspension Calendering Grade K57 FD Vreden in Germany further underscored the increasing sentiment in the pricing environment for PVC in the region.
Middle East Asia
The third quarter of 2024 has been challenging for the Poly Vinyl Chloride (PVC) market in the MEA region, characterized by decreasing prices and a bearish sentiment. Several factors have contributed to the decline in PVC prices. Firstly, the market has been influenced by a combination of high supply levels, weakened demand in the construction sector, and stable upstream Ethylene prices. These factors have created a situation of oversupply and limited demand, putting downward pressure on prices. Additionally, geopolitical tensions and concerns about weakening global demand for energy commodities have further dampened market sentiment. Within Saudi Arabia, the PVC market has experienced the most significant price changes in the region. The quarter saw an overall decrease in prices, with a 4% difference between the first and second half of the quarter reflecting the ongoing downward trend. The quarter-ending price for Poly Vinyl Chloride Suspension Grade FOB Al Jubail in Saudi Arabia stood at USD 800/MT, highlighting the continued negative pricing environment in the region.
South America
In the quarter ending September 2024, the Poly Vinyl Chloride (PVC) market in South America witnessed a notable downward trend in prices, primarily influenced by several key factors. The market experienced a challenging quarter characterized by decreased demand in the construction sector, high inventory levels, and a surplus of low-cost imports from various regions. These dynamics led to a consistent decline in PVC prices throughout the quarter. Brazil, in particular, saw significant price fluctuations, with the market facing the maximum impact of these negative trends. The overall trend for PVC prices in Q3 2024 exhibited a negative sentiment. On the cost side, the overall trend of key upstream material, Ethylene remained weak, further eroding cost support for PVC prices. The quarter-on-quarter change remained stable at 0%, indicating a sustained downward trajectory. Notably, the price comparison between the first and second half of the quarter revealed a substantial 9.3% decrease, highlighting the intensified price decline in the latter part of Q3. The quarter concluded with PVC Pipe Grade CFR-Santos in Brazil priced at USD 852/MT, reflecting the prevailing bearish market sentiment.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American market for Poly polyvinyl chloride (PVC) experienced a notable increase in prices, driven by constrained supply and heightened input costs, particularly due to limited inventories and rising crude oil prices, which reached a two-month high. Additionally, severe weather conditions, including the hurricane season and floods, disrupted industrial demand and production rates, further tightening supply chains. The combined effects of these disruptions, along with a shortage of containers and logistical challenges, fueled an upward trajectory in PVC prices.
Focusing on the USA, the country experienced the most significant price fluctuations within the region. Seasonal factors, such as the hurricane season, exacerbated supply constraints, leading to an 8.9% price increase between the first and second halves of the quarter. The pricing environment was further strained by robust domestic demand and export opportunities, particularly in Africa and Asia, as buyers sought alternatives to mitigate supply gaps.
Consequently, the quarter-ending price for PVC Pipe Grade FOB Texas in the USA stood at USD 813/MT. This upward trend reflects a positive pricing environment, driven by high input costs, robust demand, and constrained supply, underscoring the persistent inflationary pressures within the PVC market in North America during Q2 2024.
APAC
In Q2 2024, the Poly Vinyl Chloride (PVC) market in the APAC region experienced a pronounced increase in prices, driven predominantly by a confluence of supply chain disruptions and heightened production costs. The market faced significant logistical challenges, including severe container shortages and escalating ocean freight rates. These logistical bottlenecks were compounded by reduced production rates due to maintenance shutdowns and upstream cost pressures from rising crude oil and ethylene prices. Additionally, an upsurge in downstream demand, particularly from the construction sector, further tightened the supply-demand balance, exerting upward pressure on PVC prices. Focusing on Japan, the country witnessed the most substantial price fluctuations within the region. The PVC market in Japan was notably impacted by an extended maintenance turnaround at key production facilities, which exacerbated the already strained supply situation. The price comparison between the first and second half of the quarter also indicated a consistent 2% increase. The quarter concluded with the PVC Suspension flexible grade K67 price assessed at USD 748/MT FOB Tokyo. This consistent upward trend reflects a positive pricing environment for PVC in Japan, influenced heavily by supply constraints and robust demand, signaling a market that remains sensitive to production and logistical dynamics.
Europe
In Q2 2024, the Poly Vinyl Chloride (PVC) market in Europe experienced a marginal decrease in prices. This decline was driven by several key factors, including subdued domestic demand within the construction sector, and intensified competition among regional sellers. Additionally, the economic outlook remained uncertain, exacerbating the bearish market sentiments. The upstream cost pressures, especially from ethylene, eased somewhat but were insufficient to buoy PVC prices. Shipping disruptions and logistical challenges further compounded the market's instability, causing many producers to reduce output rates. Focusing on Germany, where the most significant price changes occurred, the market dynamics closely mirrored the broader regional trends. German PVC prices fell sharply, influenced by a combination of high production costs and weak downstream demand, particularly from the construction industry. The first half of the quarter showed a slight resilience but eventually succumbed to a 1% decline in the latter half. The quarter-ending price stood at USD 925/MT for PVC Suspension Calendering Grade K57 FD Vreden, underscoring the bearish market sentiment that has dominated this period. Overall, the pricing environment for PVC in Germany during Q2 2024 has been marginal negative, driven by structural market weaknesses and supply-related disruptions.
MEA
In Q2 2024, the Poly Vinyl Chloride (PVC) market in the MEA region experienced a marked upward trend, driven by several critical factors. Key influencers included constrained domestic supplies, elevated production costs stemming from rising crude oil prices, and logistical disruptions. The rebounding crude oil prices significantly heightened cost pressures on PVC production, leading to an inevitable increase in market prices. Compounding these challenges were sustained reductions in production rates and container shortages, which further tightened the supply chain. Focusing on Saudi Arabia, the region witnessing the most substantial price flux, these dynamics were particularly pronounced. Seasonal demand fluctuations in the construction sector amplified price volatility, with the peak season typically driving up prices. The overall trend was an escalatory one, reflecting an increasing sentiment in the market. Notably, a 4% price increase between the first and second halves of Q2 highlights mid-quarter accelerations in price dynamics. By the end of the quarter, the price of Poly Vinyl Chloride Suspension Grade FOB Al Jubail in Saudi Arabia closed at USD 827/MT. This consistent increase underscores a positive pricing environment for PVC, driven by robust demand and constrained supply. The interplay of high upstream costs, logistical bottlenecks, and seasonal demand spikes has created a market characterized by increased prices and tightened supply chains, reflecting a predominantly positive market sentiment.
South America
In the second quarter of 2024, the Poly Vinyl Chloride (PVC) pricing landscape in the South American region witnessed a significant uptrend. This surge was primarily influenced by various factors such as supply chain disruptions, limited inventories, high selling costs, and elevated freight charges. The market was further impacted by production cuts in key exporting nations and fluctuating crude oil prices, which heightened cost pressures and propelled PVC prices upwards. Brazil, in particular, experienced the most substantial price fluctuations within the region, with a notable 7% price variance between the first and second half of the quarter. This volatility in pricing reflected the dynamic nature of the market, where demand-supply dynamics, seasonal weather patterns, and currency fluctuations played a crucial role in shaping price trends. The quarter-ending price of USD 977/MT for PVC Pipe Grade CFR-Santos in Brazil underscored the prevailing bullish sentiment in the market, signaling a positive pricing environment that favored sellers amid tightening supplies and growing demand. As the market navigates these complexities, continuous monitoring of economic indicators, construction activity, and supply chain conditions will be crucial for accurately projecting the demand for PVC in the coming months.
For the Quarter Ending March 2024
North America
The first quarter of 2024 has been a period of increasing prices for Polyvinyl Chloride (PVC) in the North American region. Several factors have influenced market prices during this time.
Firstly, there has been a surge in demand from the downstream construction sector, driven by infrastructure development projects and increased manufacturing activity. In a concerning turn of events, the collapse of Baltimore's Francis Scott Key Bridge has raised alarms regarding the smooth movement of PVC in the United States. This incident comes at a precarious time when tank supplies in the region were already under strain due to unfavorable weather conditions.
This quarter, the focus is on consumer inflation data in the United States, particularly following a strong payroll employment report indicating a robust labor market. Currently, interest rates are in a contractionary phase, aiming to slow down economic expansion. Moreover, the PVC exported value dipped by 5.2% during January 2024 indicating a surge in the inventory levels. The percentage change from the previous quarter in 2024 was recorded at 7%, indicating a significant upward price movement. To conclude, the latest quarter-ending price for PVC Pipe Grade FOB Texas in the USA was USD 736/MT during March 2024. The pricing environment for PVC in the North American region during Q1 2024 has been positive, with increasing prices driven by improved downstream demand and supply constraints.
APAC
The Poly Vinyl Chloride (PVC) market has experienced a decline in the APAC region during the first quarter of 2024. The market has been influenced by various factors, including weak downstream demand, and ample supplies. Despite increased crude oil prices, the PVC market has remained steady. Confidence in the spot market has weakened, resulting in temporary fluctuations and consolidation. On the PVC demand front, the demand from the Chinese construction sector remained low during the quarter. Stocking operations were predominantly geared toward meeting demand. Producers had previously offered discounts in March deals in Vietnam to stimulate sales, signaling ongoing challenges in the market despite price adjustments. Traditionally, Taiwanese producers had set benchmarks for PVC pricing in Asian markets. However, recent developments suggested a departure from this trend, with some Chinese producers choosing to maintain stable export prices amidst unfavorable supply-demand dynamics. The inventory levels in the downstream market were elevated, characterized by weak demand and sales, making it challenging to stimulate the sluggish market through infrastructure initiatives. However, In Japan, PVC prices have increased by 3.7% during this quarter, reaching USD 724/MT for PVC Suspension Flexible Grade K67 FOB Tokyo in March 2024 due to constrained supplies.
Europe
The recent increase in PVC (Polyvinyl Chloride) prices in the European market during the quarter ending March 2024, reflected moderate demand and a scarcity of suppliers. Challenges faced by the European PVC supply chain, including logistics disruptions linked to the Red Sea turmoil, contributed to the current PVC pricing trend. Downstream production rates have decreased due to supply disruptions, leading market participants to take a cautious stance on further changes. Limited PVC supplies in the German domestic market were notable despite low demand fundamentals amidst slowed construction activities. Global crude oil prices surged, surpassing USD 87 per barrel, driven by factors like tighter physical markets, OPEC+ production cuts extension, and geopolitical tensions. However, PVC prices in the German market remained stagnant, with a narrowed demand-supply gap and limited stock availability amid rising input costs in the middle of the quarter. The supply concerns emerged in March 2024 as the Easter holidays approached, particularly focusing on German ports facing closures during weeks 13 and 14 due to the holidays. Moreover, the export value of PVC increased by approximately 27% in January 2024 indicating a shortage of inventories in the line of production rate cuts further escalating the PVC prices this quarter.
Middle East Asia
The first quarter of 2024 was a positive period for the Poly polyvinyl chloride (PVC) market in the MEA region. PVC prices underwent significant changes, particularly in Saudi Arabia. Influential factors included increased downstream demand in the construction industry, limited stock availability, and stabilizing upstream ethylene prices. These factors created a bullish market situation with moderate supply and moderate to high demand. In Saudi Arabia, PVC prices surged in February 2024 due to increased domestic demand from the construction industry and limited stock availability. Business conditions improved sharply, with downstream construction companies expressing optimism about their growth prospects. Demand for PVC ranged from moderate to high, supporting product costs and boosting buying confidence in the downstream industry. Overall trends, seasonality, and price change correlations showed a gradual increase in PVC prices throughout the quarter. Prices experienced a positive percentage change from the same quarter last year, indicating market growth. The percentage change from the previous quarter in 2024 was also positive, reflecting continued upward momentum in prices. In conclusion, the PVC pricing environment in the MEA region, particularly in Saudi Arabia, was positive in the first quarter of 2024, influenced by increased demand, limited supply, and stable upstream prices. The quarter-ending price for PVC Suspension Calendering Grade K60 FOB Al Jubail in Saudi Arabia was USD 765/MT.
South America
The PVC price trend in South America was on the upward side in the first quarter of 2024 due to constrained regional supplies and tight stock availability. The PVC price trajectory in the Brazilian market continued to be impacted by disruptions in the supply chain following a collision involving the Bridge at Baltimore and a container ship in the USA on the early morning of March 26th. This incident posed another threat to the PVC supply chain, coupled with a moderate increase in downstream demand towards the end of March 2024. The collapse of the Francis Scott Key Bridge in Baltimore further exacerbated disruptions, significantly affecting traffic flow through the Maryland port. This port served as a vital center for warehousing and transshipment activities for various commodities, including PVC, along the US East Coast. Traders adjusted their pricing strategies based on warehouse stock availability, while adverse weather conditions intermittently disrupted terminal operations, prompting careful contingency planning. Despite an improvement in downstream demand, traders cautiously raised product prices to maintain margins. Moreover, as per the latest data, the imported value declined by 1% in February 2024 indicating tight stock availability in the Brazilian market.
For the Quarter Ending December 2023
North America
The North American Poly Vinyl Chloride (PVC) market witnessed a decline in prices in Q4 2023. The market was impacted by limited demand from the downstream construction and packaging sectors, and ample supplies.
The limited demand for PVC in the USA was due to sluggish economic recovery and stagnant trading conditions in the construction segment. The quarter-ending price of PVC Pipe Grade FOB Texas in the USA was USD 679/MT. Anticipating a price increase resulting from the new import tariff, buyers temporarily halted their purchasing activities for this time frame. Additionally, international factors, such as the Russia-Ukraine war and a drought affecting the Panama Canal, further complicated the USA's international container logistics during the terminating quarter of the year.
Responding to a significant decline in spot export prices relative to contracted prices, US buyers are currently in active discussions about potential reductions in contract PVC prices. The disruptions in US shipping caused by Panama Canal issues and the continued decline in crude oil values also impacted pricing dynamics in the North American PVC market.
Asia
The Poly Vinyl Chloride (PVC) market in the APAC region saw an overall decline in prices during Q4 of 2023. In the second half of the quarter, the limited inquiries in the regional market for PVC and production cutbacks led to a balanced market situation with moderate supply levels. The first half of the quarter saw a low to moderate demand for PVC in the downstream construction and packaging industry which led to a bearish market situation. In November, the PVC market experienced a price decline, attributed to modest downstream demand and lingering uncertainties impacting regional buyers' confidence in purchasing. The domestic spot price for PVC initially dropped and later rebounded in response to the unpredictable market conditions. The market players felt pressure to reduce high pre-procured stock levels, leading to sales at lower margins. On the upstream side, the closing price of the primary US WTI crude oil futures contract saw a decrease influencing the downward trajectory of PVC prices. Conclusively, the spot market conditions were unfavorable in Q4 of 2023, and overall trading activity was moderate towards the end of the quarter. Most manufacturers' quotations remain stable, and downstream transactions are approached with caution. Thus, the price of PVC for Pipe Grade was assessed at USD 803/MT, FOB Busan (South Korea) in December 2023.
Europe
The Poly Vinyl Chloride (PVC) market in Europe witnessed a challenging Q4 2023, with multiple factors impacting the prices. One of the primary reasons was the slow movement of downstream construction industry consumption, leading to a bearish trend for PVC in December 2023. Another significant factor was the adequate availability of inventories, which further impacted the prices negatively. Additionally, high input costs, shortage of supplies, and destocking sentiments among market players also weighed on the price momentum in November and December 2023. Germany saw the most significant changes in prices, with a bearish trend in most of 2023. The strategy of reducing operating rates to protect profit margins for producers and traders proved insufficient for suppliers to boost margins, given the competitive pressures from the import market. Despite production cutbacks, PVC supplies consistently struggled due to low demand in Q4 of 2023. The European PVC market notably outperformed its global counterparts, leading import suppliers to redirect shipments to the region during the global market downturn in November 2023.
Middle East Asia
The Poly Vinyl Chloride (PVC) prices in the Middle East Asian region (MEA) region were overall weak in the fourth quarter of 2023. Firstly, the market experienced a bearish trend, with high supplies and low demand in the first half of the month. The oversupply of PVC in the region led to a downward pressure on prices, as market participants had amassed substantial inventories. Additionally, weak demand in the downstream industry, particularly in the construction sector, further contributed to the subdued market conditions. In terms of specific country analysis, Saudi Arabia witnessed a decline in PVC prices during this quarter. The overall demand in the region remained moderate, and the market was influenced by competitive offers. Moreover, the export-focused PVC markets in Saudi Arabia faced diminished demand conditions, adversely affecting their growth prospects and exerting pressure on industrial profit margins. The interplay of ample supplies and decreased export inquiries aligned with the decreased pricing trends of PVC. In terms of domestic demand, purchases were mainly influenced by immediate requirements, and consumer interest in PVC within the downstream segments remained moderate throughout the month. Recent assessments revealed that global consumers scaled back both their procurement and manufacturing production activities, presenting additional challenges for the PVC market. As a result, these factors have contributed to a delay in the price momentum of the commodity in the terminating quarter of 2023.
For the Quarter Ending September 2023
North America
The Polyvinyl Chloride (PVC) prices exhibited a positive momentum in the quarter ending September 2023 and were primarily governed by the limited stock availability. In August 2023, the United States PVC market faced a significant supply squeeze due to planned shutdowns and maintenance at major PVC plants. This led to a PVC price hike, causing concerns about price volatility. Notable players impacted by these disruptions include Formosa Plastics, with a 753,000 MT/yr production capacity plant in Texas closed for maintenance in August, and another 536,000 MT/yr unit in Louisiana undergoing maintenance in September. Westlake Chemical Corporate also temporarily closed its 725,747 MT/yr VCM plant in Louisiana in September, affecting downstream PVC production. Shintech, a major PVC producer, planned a shutdown of its 890,000 MT/yr unit in October for maintenance. Towards the end of the quarter, September 2023 PVC prices remained stable due to reduced demand from the construction industry amidst weak purchasing enthusiasm in the region market in the line of limited produced inventories. Additionally, A UAW strike affecting major automakers’ production also contributed to decreased PVC demand in the USA. Additionally, the construction sector's demand dropped since August, affecting PVC's future market transactions in the last quarter of 2023.
APAC
The PVC price trend in the quarter ending September 2023 witnessed an overall upward trend in the APAC region amidst increased demand from the construction sector and robust market activity in the middle of quarter 2023. The surge was fueled by multiple factors, including expectations of a significant boost in the downstream construction demand, and resulted in heightened offtake across regional markets. Meanwhile, the supply-side scenario was dominated by escalating Calcium Carbide prices in China and soaring crude oil costs, as a ripple effect constricted PVC production rates and created a bullish market environment. The impact of a disruptive typhoon event in August 2023 in China exacerbated supply challenges, resulting in constrained regional PVC availability. In response, market players raised prices to safeguard their profit margins, coinciding with a surge in international offers. However, toward the end of the quarter, PVC prices took a turn in the southward market momentum amidst stability in demand and ample stock availability backed by the stagnancy in the procurement activities in the construction industry of the APAC region and sufficient stocks compelled the traders and manufacturers to stabilize their quotations in the domestic as well as in the international markets at the termination of September 2023.
Europe
In the quarter ending September 2023, the European market witnessed a relatively downward momentum of the PVC price dynamics. With regional participants returning from their summer holiday, a cautious resurgence in pre-purchasing activities occurred, briefly keeping PVC prices at a modest low. August's earlier construction industry woes, fueled by high interest rates, had cast a shadow over PVC consumption in the first half of the quarter third. The upstream EDC prices inched upward, mirroring the surge in crude oil futures, thus adding cost pressures for PVC producers. In the middle of the quarter third, mounting inflation further complicated production concerns, prompting the ECB to make one last interest rate hike to counter inflationary pressures. Amidst these challenges, PVC sellers in September 2023 found renewed optimism. While the spot market initially lacked strong buying incentives, the necessity for restocking and attractive import prices reignited buying interest. In contrast, the PVC market had seen marginal changes in the September prices due to steady downstream demand, consistent international inquiries, and low inventory levels. A pause in Central Bank interest rate hikes aimed at taming regional inflation, coupled with domestic buyers adopting a wait-and-see approach, led producers to reduce inventories at lower profit margins. Economic and geopolitical uncertainties, along with tightening financial conditions, had stifled demand, with the economic sentiment index witnessing a gradual decline in the Eurozone during this quarter.
Middle East Asia
The fluctuations in the PVC prices in the quarter ending September 2023 recorded resilience in the Middle East Asian region and resulted from the mixed downstream market situation. In Saudi Arabia, the prices of PVC have been upward since the start of the third quarter of 2023, due to rising international offtakes amidst a shortage of supplies with the rise in the upstream crude oil costs. Moreover, from the domestic demand perspective, the PVC downstream demand was strong in the construction industry amidst the booming construction segment along with improved PMI in September 2023 in Saudi Arabia. As per the latest insights, the input price inflation for PVC increased in line with higher crude oil prices and elevated the cost pressure on the manufacturers to drive up the prices and pass the cost burden to the consumers. The output charges rose at a further upward rally throughout the month. Moreover, the CPI in Saudi Arabia increased by 2.0% as per the August data and further, the PMI seems to be improving amidst reviving business sentiments in the country as the PMI (Purchasing Managers Index) recorded 57.2 points as per the latest Saudi data of September 2023.
For the Quarter Ending June 2023
North America
The PVC prices followed a downward trajectory in the quarter ending June 2023, backed by the persistently sluggish demand in the region's construction sector. The decrease in sales and profit for the producers reflected the challenging global economic environment, along with macroeconomic factors weighed on the commodity performance this quarter. In the H1 of Q2, supply chain disruptions and inflationary pressures affected the downstream packaging industry. Furthermore, despite production issues faced by major producers, including Formosa Plastics Corp. USA and Westlake Corp., PVC demand remained muted. The weak demand was primarily attributed to a slowdown in residential construction in the region due to elevated interest rates by the Fed to limit inflation in the United States at the start of Q2. These restrictive financial conditions and inflation has paused the consumer purchasing power in various sector and conclusively influenced PVC price discussion in the US market. At the end of the quarter, the US Department of Homeland Security (DHS) banned the inflow of Chinese imports to keep forced labor practices out of the US supply chain, and this ban impacted the PVC prices, and market players stabilized the prices toward the end of June.
APAC
According to the latest data, PVC prices exhibited a downward trend in the quarter ending June 2023 in the APAC market. The market participants were concerned about the gloomy demand in the construction and packaging sector of the country. The inadequate revival of the economic condition in China deprived the consumer buying enthusiasm in the domestic market, and sluggish offshore trading activities further affected the pricing movement of PVC in this quarter. Moreover, the volatility in the upstream crude oil prices and lower feedstock Calcium Carbide supported the price decline for PVC in Q2. However, manufacturers opted to reduce production run rates in the face of bearish market transactions in the H2 of the Quarter. In the H1 of Q2, the downstream processing industry deteriorated following the Holiday season. Moreover, the export demand slumped, and rising interest rates weighed on the construction sector offtakes across the regional market. Traders continued to experience oversupplied market since the Labour day Holidays in May 2023 and the drop in crude oil costs and feedstock Calcium Carbide prices.
Europe
In Europe, PVC prices were low in the quarter ending June 2023, backed by the lower offtakes in the downstream sectors, including the construction and packaging segments. The major factor influencing PVC pricing dynamics was a steep decline in construction offers and ample availability of inventories as interest rates continued to increase and weighed on consumer spending throughout the quarter. The market players closely monitored market conditions and adopted strategies to navigate this period of decline amidst financial stress by reducing production rates, focusing on balancing costs and maintaining a stable supply chain. Meanwhile, the reduction in the feedstock EDC prices and upstream Ethylene costs also supported the decline of the prices during this time frame. The slowdown in the global economic condition resulted from persistent repercussions such as restrained investment, increasing debt vulnerabilities, and shortages in funding in the regional market and conclusively diminished the construction sector demand for PVC. Therefore, the PVC prices were assessed monthly declination nearly 6% in June 2023.
Middle East Asia
The PVC price trend in Saudi Arabia was down in the quarter ending June 2023 due to reduced demand in the construction sector amidst the festive season in Saudi Arabia in April 2023, whereas in May, construction activities improved slightly, as per the statement of the Chief Economist of the Riyadh Bank, however this rise in insufficient to drive up the PVC prices amidst high supplies. Moreover, the buying confidence was hindered in Saudi Arabia at the termination of June 2023 by the sluggish offshore demand for PVC and the muted trading atmosphere after one week of the EID holidays in the Saudi market. Additionally, the economic slowdown in the region led to a decrease in the manufacturers' and traders' purchasing enthusiasm and profit margins. These factors collectively contributed to the decline in PVC prices in the second Quarter of 2023 in the region. Meanwhile, the availability of cheaper Ethylene and increment in the production rates, coupled with a rise in employment rates, prompted market participants to lower their prices in response to reduced input costs in Saudi Arabia throughout this quarter.
For the Quarter Ending March 2023
North America
The price of PVC in the USA showed a southward trend in the quarter ending March 2023, with a quarterly drop of 3.3%, owing to the abundant inventories and slowed-down inquiries in the downstream construction and other competitive sectors. Moreover, PVC offers in the US market was weighed by the rising interest rates and bearish consumer buying sentiments. The PVC enterprises also felt competitive cost pressure in the domestic market of the USA, impacting the final discussions of the commodity this quarter. In addition, the volatility in the upstream crude oil prices put input cost pressure on the vinyl monomer value chain at the termination of the Q1 of 2023. Thus, the price of PVC for Suspension grade was assessed at USD 945/MT FOB Texas (USA) in March 2023.
APAC
In Asia, PVC prices showed a southward trend with the slump downstream momentum in the quarter ending March 2023, as ample availability of stocks and competitive offers pressured commodity prices downward. The PVC inquiries were weak in the domestic and international markets, and the enterprises felt uncertainties in the APAC market. However, market sentiments varied at the termination of March 2023 as some market players cited low-cost products from Asia combined with competitive freight rates. Moreover, PVC overseas offers from the other Southeast Asian market amidst dampening demand continued weak purchasing sentiments in March 2023. 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.
Europe
The German PVC market witnessed a prolonged fall in the quarter ending March 2023, with recent drops in the price trend at the termination of March 2023. The prices tumbled in Germany 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. Meanwhile, the imports from Turkey and other European countries have not seen any improvement in the PVC discussions for April as well, amidst abundant supplies, weak demand, and falling prices in Asian outlets. High inflation coupled with slow economic growth kept trading activity tied to basic needs only in Europe.
For the Quarter Ending December 2022
North America
The PVC (Poly Vinyl Chloride) prices showed a plunging trajectory throughout the Quarter ending December 2022, owing to the silent downstream offers from the construction sector amid a slump in the real estate market of the USA and steady overseas inquiries of the product. Higher mortgage rates weighed on the buying sentiments amongst the buyers and led to curtained production activities in the region. With low demand and ample stocks, Formosa Plastics went for maintenance shutdown in Baton Rouge (USA) in December and November for ten days in this Quarter. The potential Recession and low consumer confidence affected the PVC market considerably in the last Quarter of 2022. The price of PVC for suspension grade was quoted at USD 1265/MT FOB Louisiana (USA) in December 2022.
APAC
The PVC prices were low in the Q4 of 2022 in the APAC region due to market uncertainties and muted consumer demand from the downstream construction sector. The PVC price dropped in the South Korean market amid slumped domestic downstream construction offers and dampened overseas inquiries. Meanwhile, the inflow of cheaper imports in the region and ease in the feedstock Ethylene costs affected the pricing dynamics of the product. In addition, low demand and ample stocks have led to maintenance shutdowns in Hanwa Chemical and LG Chem of South Korea in November and December in this Quarter. The price of PVC for suspension GP was quoted at USD 781/MT in December 2022.
Europe
The PVC price showed an overall downward trend in the Q4 of 2022, backed by the ample availability of stocks and weak demand fundamentals in the region. Meanwhile, volatility in the upstream crude oil prices amidst the European energy crisis also caused input pressure on the PVC-producing industries in this Quarter. In addition, the rising Recession in the region and bearish market sentiments for PVC in the regional market compelled the manufacturers to limit the profit margins in the region and destock piled-up inventories at lower prices in the market in the Quarter ending December 2022. Stability in the feedstock Ethylene and VCM prices also affected the price movement of the commodity. The price of PVC for Suspension calendering grade K57 was assessed at USD 1903/MT FD Vreden (Germany).
For the Quarter Ending September 2022
North America
Poly Vinyl Chloride (PVC) prices demonstrated a plunging trajectory in the third Quarter of 2022. The weak demand from the downstream construction and packaging segment was considered a factor for the downward price movement of the commodity in this Quarter. The sluggish downstream construction demand for the product amid diminished house-building activities in the region impacted the prices of the commodity. Moreover, the PVC prices dropped amidst surplus availability of inventories and high upstream energy costs with the upcoming winter season in the Quarter ending 2022. In addition, the tensions on the west coast port have also contributed to the declining trend of PVC in the North American region.
APAC
Poly Vinyl Chloride (PVC) prices tumbled in the APAC region in the Q3 of 2022. PVC prices fell in China this Quarter with sluggish downstream demand amidst COVID-19 Lockdown restrictions in the country. Consumer confidence was insufficient for the product in the local market. Since Q2, weakened market activities have affected APAC region freight charges and overall material costs. In addition, September Typhoons in several Asian countries resulted in a bearish market situation for the products like PVC as the buyers indulged in buying only on a need basis in this period. Thus, the price of Poly Vinyl Chloride deteriorated by nearly an average of 9% during the Quarter ending September 2022.
Europe
The overall market outlook of Poly Vinyl Chloride (PVC) showed a downward trajectory in the European region during Q3 2022, backed by the slumped domestic offers from the downstream construction sector in the region. Since the Russia-Ukraine War, upstream energy costs have remained high as the Russian energy, and oil supply bottleneck remained a critical issue. The region's high inflation rate diminished the buying interest amongst the PVC buyers. The market players struggled with piled-up stocks and made the product sales at reduced profit margins in the Quarter ending September 2022. Thus, the prices of Poly Vinyl Chloride showed a decline of an average of 3% in this Quarter.
For the Quarter Ending June 2022
North America
Poly Vinyl Chloride (PVC) prices showed an upward trend throughout Q2 of 2022. Strong values of upstream Chlorine and robust downstream demand for PVC in construction led to a continuous surge in its prices since April. USA experienced a rise in feedstock Chlorine prices in April due to the implementation of force majeure at a giant producer of Chlor Alkali, Olin, in the US system in Q2 2022. However, in June, prices eventually dropped with surplus availability of inventories and weak demand from the downstream construction segment. Moreover, the high inflation rate due to War and surge in input costs for Poly Vinyl Chloride were impacted as the USA's supplies declined to the anticipated levels in Quarter 2. The Price was assessed at USD 1784/MT for PVC suspension grade with FOB on a Louisiana basis in June 2022.
APAC
Poly Vinyl Chloride (PVC) prices showed a downward trend during the Q2 of 2022 in China. PVC prices fell in China in April and June due to the diminished downstream demand amid Lockdown restrictions in the country. Production of raw material Calcium Carbide was curtailed, impacting the Price of PVC due to the surge in cases of COVID 19 and resulting in the implementation of a zero covid policy in China throughout Q2 of 2022. So, strict quarantine protocols at major container terminals have continued to affect the freight charges and overall material costs since Q1. Moreover, Chinese currency depreciation against the US dollar also caused downward pressure on product prices. The Price of Poly Vinyl Chloride was quoted at USD 1283/MT for pipe grade CFR Shanghai (China) in June.
Europe
The overall market outlook of Poly Vinyl Chloride (PVC) showed an upward trajectory in the European region in Q2 2022. PVC pricing chart showcased an increasing trajectory in the market throughout this quarter, backed by the critical shortage of raw materials, Chlorine and Ethylene, which led to a surge in the European PVC prices. Since the ongoing Russia-Ukraine War, shipment costs remained high as supplies bottleneck remained a critical issue and the region's high inflation rate. In Addition, a hike in energy prices amid War also conclusively caused upward pressure on the input costs for the product. The Price of Poly Vinyl Chloride Suspension calendaring grade K57 FD was assessed at USD 2279/MT at Vreden at the end of June.
For Quarter Ending March 2022
North America
Poly Vinyl Chloride (PVC) prices showcased a surge throughout Q1 of 2022. However, in early January prices eventually dropped in line with gradual normalcy in production activities. Weak values of upstream Chlorine and seasonal dullness in PVC local as well as export inquiries led to a continuous drift in its prices since mid-December. USA experienced surge in feedstock Chlorine prices in the start of February amidst fears of the restricted supply due to the maintenance turnaround at giant producer of Chlor Alkali in US in Q1 2022. The availability of feedstock Chlorine at a global level has suddenly narrowed as the supply from USA showed fall below the anticipated levels in the final week of January. Price was assessed at USD 1663/MT for PVC suspension grade on FOB basis in Louisiana in March 2022.
Asia Pacific
PVC prices showed an upward trend during the Q1 of 2022. PVC prices in China maintained an uptrend since January owing to limited availability of the key feedstock Calcium Carbide. Production of Calcium Carbide was curtailed due to the resurgence of Covid 19 as it resulted in implementation of zero covid policy in China throughout Q1 of 2022. Strict quarantine protocols at major container terminals such as Ningbo continued to affect the freight charges and overall material costs in mid-March. As the supplies were disrupted in domestic market of China, high demand from downstream industries like agriculture, medical instrumentation and healthcare and packaging segments led to a surge in prices of PVC for the Q1 of 2022. Prices of PVC Suspension Flexible GradeK67 (Spot) were assessed at USD 1498/MT Ex-Nanjing in the March 2022.
Europe
The overall market outlook of PVC showcased an upward trend in the European region in Q1 2022. PVC pricing chart showcased an upward trajectory in the market throughout the quarter backed by the critical shortage of raw materials which led to an increment in the regional prices. Since the ongoing Russia-Ukraine war, shipment cost remained high as port congestion remained the key issue. In addition, logistic issues like container shortages and soaring freight costs exerted additional value on all the imported commodities in Europe in this quarter. The price of European Poly Vinyl Chloride Suspension for calendaring grade K57 FD was assessed as USD 2108/MT at Vreden in March end.
The overall market outlook of PVC demonstrated an upward trend in the European region in Q3 2021. The PVC pricing chart showcased an upward trajectory in the market during September backed by the critical shortage of raw materials which led to increment in the regional prices. Shipment cost remained firm as port congestion remained a key issue. In addition, logistic issues like container shortages and soaring freight costs exerted additional value on all the imported commodities in Europe in this quarter as well.
For the Quarter Ending December 2021
North America
As the market dynamics of Chlor-Alkali and Poly Vinyl Chloride (PVC) are intertwined, limited production of Caustic Soda as operating rates remained low as a repercussion of Ida hurricane since mid Q2 2021 continued to stress the supply in the quarter ending December as well. As several plants in US halted their production, supply of feedstock Chlorine remained restricted which eventually bottlenecked the production of PVC. The reduced availability amid high export demand for PVC led to led to the rise in its contract prices till November. However, after reaching tremendous high in November, prices eventually dropped due to the offseason dullness in the demand pattern. In December, supply outstripped the demand, making PVC prices plummet throughout the month. PVC tumbled to USD 1680 per MT FOB Texas for Suspension Grade in the final week of December.
Asia
Market sentiments of Poly Vinyl Chloride (PVC) initially gained in October then registered a steep drop by the end of December. PVC prices witnessed consistent surge in October amidst favourable demand from packaging and construction segments in the peak festive season. Strong demand for PVC gradually declined from early-November, leading to higher inventory levels. In China, inventory levels surged to nearly 133% with respect to the previous year. Dept crisis in the construction sector and off-season dullness in demand in December caused consistent decline in PVC prices. Flat trading activities and bearish values of feedstock Ethylene and Chlorine also influenced PVC prices in December. With supply outstripping the demand, Pipe Grade PVC prices in China touched rock bottom settling at USD 1345 FOB Shanghai while in Calendering Grade settled at USD 1740 per MT in December.
Europe
Europe experienced extreme shortage of Vinyl Chloride Monomer (VCM) which compelled a major PVC producer, Vynova to run both PVC units at Belgium at less than 50% capacity. In addition, the force majeure by Vinnolit at its Caustic Soda plant also tumbled the availability of its feedstock Chlorine in the first half of the quarter. Although the availability of feedstock started levelling by late-November, PVC prices continued to witness consistent climb due to reduced production and high energy prices. PVC prices for Suspension Grade in Europe reached USD 2050 per MT FD Germany in December.
For the Quarter Ending September 2021
North America
The production of PVC in the US had witnessed a slump since late August as Hurricane Ida made landfall on 29th August, forcing shutdown of major PVC manufacturing plants from Baton Rouge to New Orleans along the Mississippi river that accounts for nearly half of US PVC production. During the third quarter, Shintech had to shut down its 1.45 Mn MT/Year plant in Freeport, Texas as its VCM source Olin Chemicals shut its VCM plant on the 30th August due to technical failure. Prices of PVC started surging since the first week of September and reached an all-time high at 1960 USD/Mt FOB Louisiana and 1940 USD/Mt FOB Texas during September. However, the last week of September observed moderation in prices as production picked up owing to plant restarts in Texas and Louisiana.
Asia
The prices of Poly Vinyl Chloride (PVC) rose effectively in the Asia Pacific region during the third quarter of 2021. The pricing trend continued to experience an upward trajectory amidst an active polymer market against the global supply shortage. Although manufacturers in Asia were heard operating their plants at full capacities during the quarter, insufficient production and supply from western countries put upward pressure on PVC’s market fundamentals across the region. Manufacturers were seen enhancing their export potential to widen their profit margins by serving a large share of global demand in times of scarce supply. In India, the pricing of PVC observed a major hike as the CFR ICD Delhi prices escalated from USD 1429/MT to USD 1680/MT in Q3 2021.
Europe
The overall market outlook of PVC demonstrated an upward trend in the European region in Q3 2021. The PVC pricing chart showcased an upward trajectory in the market during September backed by the critical shortage of raw materials which led to increment in the regional prices. Shipment cost remained firm as port congestion remained a key issue. In addition, logistic issues like container shortages and soaring freight costs exerted additional value on all the imported commodities in Europe in this quarter as well.
For the Quarter Ending June 2021
North America
After registering record growth till the end of April, prices of Poly Vinyl Chloride (PVC) started normalising in May following the improved supply activities in USA. North American market revival, from pandemic after successful vaccination drive, pushed up the demand for PVC from domestic construction sector. Meanwhile, major plants like Oxychem and Westlake Chemicals lifted their force majeure from PVC suspension grade in June, which also improved the supply of PVC across the region and helped the prices to gradually decline.
Asia
Asian market showcased firm demand for Poly Vinyl Chloride (PVC) from downstream construction sector in April, which later declined in month of May. Manufacturers based in China were readily exporting PVC to the Indian market during April on fairly high prices. The steep rise in pandemic cases in India, reduced the demand for PVC from the respective construction segment, while the availability was abundant enough to satisfy the overall need of the country. Therefore, prices of PVC declined in later half of the quarter in the Indian market, and finally hovered around USD 1617/MT during the last week of June.
Europe
Europe experienced huge spike in price of PVC in the country, backed by sturdy demand pattern and critical feedstock and material shortage. Due to lower imports from USA, prices of feedstock Ethylene as well as its derivative products including, EDC, VCM and PVC were heard witnessing week on week surge during this quarter. In addition, logistical issue like container shortages and soaring freight cost also exerted additional value on all the imported commodities in Europe during this period.
For the Quarter Ending March 2021
North America
PVC production across North America region was disrupted by a rare freezing storm across the gulf, which forced the total PVC output to reach its lowest limit during Q1 2021. Due to the disruption caused by the winter storm, availability of Feedstock materials including monomer Vinyl Chloride was reduced, and high demand from domestic as well as international market supported the prices to seek uptrend. Hence the average PVC prices rose by 16.83% across the region and settled at USD 1717.5 per MT during March. Apart from all these disruptions, Shintech announced the investment of USD 1.3 billion on the expansion of its PVC plant in Plaquemine, Louisiana. This huge investment is expected to boost the overall production capacity by 838 Million lb per year.
Asia
In Asia, prices of PVC followed rapid uptrend throughout the quarter, due to high demand from domestic market but insufficient availability of cargoes. Hike in shipping container prices and uplifted freight cost across southeast Asia further supported this price uptrend in the quarter. Besides, winter storm across the US Gulf region disrupted the global supply and disturbed the trade activity in Asia. In addition, bullish demand for PVC from Chinese market supported the price in other APAC countries, like India. In Indian market, calendaring K60 grade PVC CFR price rose by 30.36% and settled down at USD 1615.97 per MT in March.
Europe
Overall exports of PVC from Europe increased during Q1 2021, due to the reduced production across US Gulf coast. Rising freight cost and shortage of shipping containers supported the prices PVC, and hence these climbed to around USD 113 per MT in some CIS countries. Although the domestic production of PVC remained tight across the region due to some planned and unplanned plants turnarounds.
For the Quarter Ending June 2020
Asia
Asian PVC market outlook remained strong as several manufacturers were seen dumping cargoes earlier this year resulting in lower inventory levels of the product. The supply deficit aggravated further with a major producer in Northeast Asia implementing a maintenance turnaround. As many countries managed to tackle the spread of contagion, market activities slowly increased by the end of the quarter with continuous ease in restriction measures across the region. Traders witnessed increased purchasing as buyers were optimistic over further demand revival with resumption in production for majority of the downstream industries. With several scheduled plant outages in the next quarter, the demand and supply gap are anticipated to widen in the later part of the year.
Middle East
As major exporting countries in South Asia and U.S. struggled to pull off their trade activities due to force majeures like production cuts and turnarounds to contain the spread of virus, supply of PVC tightened in the quarter ending June 2020. Although domestic manufacturers operated their plants at maximum capacity but were unable to sufficiently cater the overall demand. Despite damped infrastructure activities in the regions, buyers were keen to buy large spot volumes of pipe grade PVC on high hopes of resumption of construction activities by the coming quarter and to replenish the slumped inventories due to pandemic blows.
