Global PVC Prices Fluctuate With Uncertain Downstream Demand
- 23-Nov-2022 6:15 PM
- Journalist: Shiba Teramoto
Global Poly Vinyl Chloride (PVC) prices have continued to witness mixed market sentiments with a persisting downturn in demand from the downstream construction sector amidst rising inflationary pressure in the global market. Meanwhile, manufacturers are struggling with pilled-up inventories in the warehouses, and they are destocking at lower margins in late November 2022.
The prices of European PVC are affected by the obstructive market fundamentals and deteriorating demand outlook in the third week of November 2022. The wait-and-see attitude has been seen among domestic buyers for further price negotiations in Germany. Suppliers have been making steep downward revisions in the contract prices of the commodity. On the demand side, dampened PVC demand in the construction sector due to the falling real estate market and the cost of living crisis in Europe weighed on the PVC price momentum in the region. Moreover, a fall in overseas inquiries also led to a plunging trend of PVC.
Besides, PVC prices in the Chinese market experienced a sudden rise with a decline in product shipments to China by significant Northeast Asian manufacturers, leading to low stocks this week. As per the latest insights, LG Chem, a South Korean PVC manufacturer, closed its production for scheduled maintenance. This PVC production was closed from November 8 to November 22 for maintenance, impacting the prices of the commodity.
As per ChemAnalyst anticipation, prices of PVC may further show ease in December 2022 owing to the bearish demand from the downstream construction sector in Asia. Moreover, expected volatility in the feedstock Ethylene prices is anticipated to affect the price of PVC. Meanwhile, the prices of PVC will likely show a declining trend in the European market due to a rise in inventory levels and weak demand fundamentals. Furthermore, market players are likely to destock at lower margins at the end of this year.