Contrary to Asia, European PVC Prices Gain Stability for October 2022
- 19-Oct-2022 7:00 PM
- Journalist: Jacob Kutchner
Poly Vinyl Chloride (PVC) prices have recently shown a downward trend across the global market due to stability in demand. Many factors weigh on consumption in the week ending 14 October 2022, such as the global recession and several uncertainties, which have weakened the commodity's market participation in the downstream industries since the Q3 of 2022.
The European Spot PVC market showcased a steady price trend compared to other regions post witnessing a consistent fall for more than two weeks amid ongoing geopolitical tension in eastern Europe. The constancy in the PVC prices emerged from the slight hike in the raw material Ethylene costs in the European region coupled with the escalation in the input cost inflationary pressure owing to the energy crises. These market scenarios resisted any further price decay for PVC in the regional market.
On the supply side, strike action in the primary ports of Germany and the UK by the workers due to wage disputes in the region impacted the cargo movement and port performance in October 2022.
In China, the PVC market reflected a weak demand due to the adverse effect of the economic slowdown amid persisting Covid 19 lockdown disturbances, which caused a fall in PVC prices this week. Piled-up inventories compelled traders and manufacturers to maintain stable offtakes by reducing the costs of several commodities, such as PVC.
As per ChemAnalyst, the prices of PVC in the global market will likely maintain consistency in the price trend during the second half of October 2022. PVC prices in Europe might surge with the upstream energy values rising amid the energy crisis. In addition, PVC prices are expected to be lower in Asia due to the ample availability of inventories and shrunk market activities.