Global Polyvinyl Chloride Spot Prices Showed Consistent Market Sentiments in Mid-September
- 22-Sep-2022 5:55 PM
- Journalist: Patrick Knight
Since the beginning of September, the overall Polyvinyl Chloride (PVC) market has persistently demonstrated mixed sentiments across different regions. The new developments on the geopolitical and economic stages significantly impacted the demand outlook for PVC. However, the market sentiments for Polyvinyl Chloride remained general and identical to the predetermined trajectories. Furthermore, the resumption of the market activities across North-western Europe has uplifted enthusiasm amongst the PVC suppliers in numerous regions, besides a possibility of price competitiveness in the European markets.
In Europe, PVC prices maintained a stable trajectory, owing to the ease in the feedstock Ethylene prices and energy crunch in the week ending 23 September 2022. Russia has wholly hampered gas supplies to Europe to fight against western sanctions over its invasion of Ukraine. The Russian government added price pressure on the global energy market. Meanwhile, Euro depreciation against the US dollar by 1.93 in the week ending 23 September 2022 contributed to the dip in the profit margins of the market players of PVC in the region. Moreover, demand from the downstream sectors, such as the construction and automotive industries, remained unchanged in the European market.
Poly Vinyl Chloride market players in the USA felt output pressure with the region's high energy and power costs. Besides, a slight improvement in the downstream demand fundamentals from the construction sector, with an increase in the housing rate in mid-September, impacted the PVC price momentum. The increase in the demand for PVC influenced the market players to increase the profit margins in the market gradually.
The Chinese market of PVC witnessed a steady price trend after a continuous fall in the previous weeks, backed by the uncertainties caused by the COVID-19 lockdown and, as a ripple effect, diminished the demand for the commodity. Meanwhile, conflicts in the Chinese real estate sector narrowed domestic offers for the product in the country. Meanwhile, the slump in freight rates caused downward price movement for PVC in the primary PVC Taiwanese market. According to the trader, the freight rate fall resulted from the falling overseas trade in China this week.
As per ChemAnalyst anticipation, prices of Poly Vinyl Chloride may further show a surge in October owing to the demand from the downstream industries such as the construction and Automotive segment in Europe. Moreover, international offers for Poly Vinyl Chloride are likely to show an elevation in the North American region, backed by the ease in the inflation rate, impacting the product's prices. Therefore, Polyvinyl Chloride market participants may increase the costs further amid strong demand fundamentals to escalate their profit margins in October.