Global Poly Vinyl Chloride sentiment shivers on growing demand concerns
- 22-Apr-2022 3:25 PM
- Journalist: Gabreilla Figueroa
Poly Vinyl Chloride sentiment has recently showcased mixed sentiments across global markets due to growing demand amid many factors that weigh on consumption in the month of April. The world’s largest PVC producer, China, has been partly experiencing pressure as the resurgence of Covid has hit demand for PVC. Additionally, import offers in Turkey and Egypt markets have already seen a downward trend for the product.
China’s domestic PVC market reflected weak demand conditions amid the extended lockdowns in Shanghai as prices softened this week. Manufacturers indulged in procuring stable offtakes in the domestic market as delays in export activity due to a shortage of containers for shipment led to a reduction in prices of several commodities, such as PVC. The activity was limited as players had put up a wait-and-see attitude before the announcement next week.
The European Spot PVC market showcased a high price trend in comparison to other regions amid ongoing geopolitical tension in eastern Europe. Meanwhile, the PVC prices were observed to rise in response to the inflation in the area. Slowing activity has put a limited supply of PVC in the region. Inflation caused as a result of conflict between Russia and Ukraine pressured PVC consumption in Turkey. This week, traders will have to trim their US, Russian, and Mexican offers at the high ends of the overall market. Moreover, natural gas prices witnessed a surge due to the extended energy crisis in the European region.
As per ChemAnalyst, the prices of Poly Vinyl Chloride in the global market are expected to maintain the consistent rise in the price trend. Caustic soda prices in Europe are likely to surge as the supplies are expected to be disrupted since the energy crisis. Prices are expected to be high due to the low availability of inventories for fulfilling the demand. A rise in Caustic Soda prices is expected in the Asian market since the surging demand for pharmaceuticals resulted from a resurgence of Covid 19 in several countries.