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Demand fundamentals impacts the Poly Vinyl Chloride market globally

Demand fundamentals impacts the Poly Vinyl Chloride market globally

Demand fundamentals impacts the Poly Vinyl Chloride market globally

  • 29-Apr-2022 12:50 PM
  • Journalist: Patricia Jose Perez

Poly Vinyl Chloride prices increased in the last week of April in the North American market due to supply disruption amidst port congestion at several shipment terminals, resulting in the shortage of raw material Ethylene. Accelerating tension between Russia and Ukraine conclusively caused port congestion in the USA.

Poly Vinyl Chloride prices witnessed a surge in the European region, backed by the strong demand from the downstream end-use industries. The ongoing conflict between Russia and Ukraine resulted in soaring energy value and bullish raw material costs in the European market. Downstream automotive demand also remained high in Europe for PVC with squeezing profit and supply constraints.

In China, sluggish Poly Vinyl Chloride demand and weak upstream feedstock Calcium Carbide caused a declining price trend for PVC. Rising Covid-19 cases in China with port congestion at several container terminals such as Ningbo have led to a decline in transportation activity. Offtakes from the downstream segments were impacted due to the uncertainty surrounding the effect of the pandemic. Manufacturers have cut down production rates due to persisting lockdowns and strict quarantine protocols. Moreover, feedstock Calcium Carbide prices decreased in the first half of April in China amid the outbreak of Covid 19 and sufficient piled up inventories for fulfilling existing demand in the regional market of China. Due to logistical bottlenecks like rail car and truck unavailability, most distributors were forced to sell their stocks short in the domestic market.

As per ChemAnalyst, the prices of Poly Vinyl Chloride will increase in the upcoming weeks in Europe and North American regions due to accelerating demand and declining production rates. The escalating tension between Russia-Ukraine will boost the energy prices as Russia has cut supplies to Poland, impacting the market of Poly Vinyl Chloride. PVC prices may continue to decrease in China, backed by a lack of demand and limited logistics amid Covid 19 restrictions.

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