Global Polyvinyl Chloride prices surging owing to the elevated Energy costs
- 28-Mar-2022 1:43 PM
- Journalist: Patrick Knight
A surge in the Polyvinyl Chloride prices was witnessed in March owing to a hike in the energy costs globally due to the current Russia-Ukraine conflict. Moreover, the substantial rise in the demand for Polyvinyl Chloride from various downstream industries also contributed to this hike in the global market. In addition, feedstock Ethylene prices rose this month in Asia due to the tight supplies in the regional market. The Polyvinyl Chloride prices have been witnessing a continuous upsurge in the global market since February.
The sellers of imported Polyvinyl Chloride in Latin America witnessed a hike in its demand, especially from Argentina due to consistent improvement in the downstream demand. Bullish buying activity for Polyvinyl Chloride from Argentina, which is considered as the key market of Polyvinyl Chloride in Latin America, has led to a rise in the price of Polyvinyl Chloride. The increased demand could be related to buyers' attempts to build inventories under the fears of scarcity of material due to the ongoing geopolitical tension and supply disruptions. Also, a consistent hike in the prices of upstream crude oil has resulted in the increase in price for Polyvinyl Chloride in Latin America's market. The prices of Polyvinyl Chloride suspension grade FOB Texas (USA) were assessed at around USD 1635 per tonne in March.
The European Poly Vinyl Chloride supplies have been limited during the past few weeks as manufacturers have been delaying orders for Polyvinyl Chloride contract purchases for March due to the existing geopolitical tensions. The overall market remained highly volatile as a result of uplifted crude and electricity prices.
As per ChemAnalyst, " Polyvinyl Chloride prices are expected to rise backed by the likelihood of a hike in the prices of upstream crude oil ". Polyvinyl Chloride prices rose by 2% in the month of March, owing to the tight availability of material in the global market and a hike in energy prices. Moreover, it assumed that China's Covid effect can be much less dire than predicted amid expectations of easing restrictions.