Category

Countries

German CPVC Prices Increase as Demand from Eurozone Recovers
German CPVC Prices Increase as Demand from Eurozone Recovers

German CPVC Prices Increase as Demand from Eurozone Recovers

  • 26-Mar-2024 5:52 PM
  • Journalist: Emilia Jackson

Prices of Chlorinated PVC (CPVC) were recorded to have increased by approximately 1.1% across the German market during first half of March 2024 with further anticipations of increments prevailing during the second half of March. Despite prices of feedstock Ethylene Dichloride (EDC) witnessing depreciation of approximately 10% during the same time frame. As of now the German CPVC market continued to be driven by improving construction activities across the British, Dutch, and Belgian markets.

Demand for CPVC originated from elsewhere in Europe, except Germany. Moderate recovery of the construction sector in the Netherlands, Belgium, and the UK largely kept the prices of CPVC from witnessing a bearish situation in Germany.

The German construction sector experienced a deep downturn during the first half March 2024 due to a lack of new work, contractions in residential and commercial segments, and negative investment sentiments. With investment sentiments remaining entrenched in the negative territory, major firms exhibited a negative outlook. Input cost inflation reached an 11-month high as delivery times continued to lengthen.

However, across the Dutch market, despite house prices almost doubling in during the start of 2024, the residential real estate market showed resiliency as mortgage applications increased by 30% in February 2024 with further anticipations of increasing towards the termination of March 2024, therefore pressuring the demand in the downstream plumbing industry, and leading to a rise in the demand for CPVC.

Across the Belgian market, the propositions made by the Belgian government to convert existing houses to energy efficient by 2025 may have increased construction activities which consequently led to a higher demand for CPVC from the downstream plumbing sector. Furthermore, upcoming municipal elections in Belgium also contributed to an increase in activities across the downstream construction sector which may increase expenditures in the public infrastructure.

The main demand for CPVC across Europe however originated from the importing British market where the construction sector neared stabilization. Upturns in the residential segment as indicated by the increased number of new buyer enquiries which appreciated by 7% and house prices continued to increase marginally in major metropolitan areas of England with current house prices being 0.9% higher in March 2024 which was in line with growing wages. House sales in the first six weeks of 2024 are 16% higher than over the same period last year.

Overall, prices of CPVC are expected to increase across the European market due to the increasing costs of feedstock EDC. Moreover, the demand for CPVC from the importing British market and Belgian markets is also anticipated to provide some strength to the prices of the product in Germany.

Related News

Aliaxis Acquires CPVC Pipe and Fittings Segment from Johnson Controls
  • 20-Aug-2024 4:42 PM
  • Journalist: Yage Kwon
Lubrizol Announces Major Land Acquisition to Build Its Largest Indian Manufacturing Facility
  • 01-Aug-2024 7:48 PM
  • Journalist: Bob Duffler
Anti-dumping duty extended on Indian CPVC imports from South Korea and China
  • 07-Jun-2024 6:06 PM
  • Journalist: Jung Hoon
Supply Disturbances Drives CPVC Prices in Mexico Amidst Demand Improves
  • 08-Jan-2024 6:47 PM
  • Journalist: Nicholas Seifield