How soaring PVC prices peaking the Global Chlorinated Polyvinyl Chloride production rates

A rise in Chlorinated Polyvinyl Chloride (CPVC) production rates has been observed since late February in the APAC region owing to high PVC prices. PVC prices have been soaring as primary polymer producers faced difficulty due to uplifted prices of crude oil in India. Additionally, USA CPVC prices showcased a similar trend during the late February to early April period. 

Chlorinated Polyvinyl Chloride is produced from the chlorination reaction of Polyvinyl Chloride (PVC) resin. Polymer industry products like PVC are derived from crude oil. The increase in crude oil prices because of the ongoing geopolitical conflict influenced the prices of PVC in North America. Volatility in the prices of Crude oil led to a change in the prices of raw material Ethylene required to manufacture PVC. Meanwhile, Chlorinated Polyvinyl Chloride prices were observed to be high in North America due to firm demand from the downstream construction and packaging industries.

Moreover, the downstream PVC turnarounds in April in various countries of Asia have influenced the market for Chlorinated Polyvinyl Chloride in the region. CPC Corporation has scheduled to shut down its Naphtha cracker plant for maintenance in April 2022 in Taiwan. The production units of PVC in Asia have been facing downtime due to maintenance work in several upstream plants amid the firm demand pattern. 

In Europe, the polymer market has been deeply affected by the uncertainty caused by the Russia-Ukraine war in March. At the beginning of the month, polymer producers called for a price increase in line with the rise in monomer costs of PVC. According to ChemAnalyst, “prices of CPVC are likely to surge in the coming months amid the supply disruption from European countries as a result of the ongoing Russia-Ukraine conflict.”