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How is Poly Vinyl chloride prices affected by the muted demand

How is Poly Vinyl chloride prices affected by the muted demand

How is Poly Vinyl chloride prices affected by the muted demand

  • 10-May-2022 3:41 PM
  • Journalist: Nina Jiang

Shandong, China: Poly Vinyl Chloride pipe grade prices showed a downward trend in the global market at the start of the month of May due to the sluggish demand from the downstream industries such as construction. Poly Vinyl costs have continued to decline in the Asia Pacific Region due to sufficient availability of inventories to fulfill existing demand from end-user sectors. Poly Vinyl Chloride prices in the European region have dipped as a result of low upstream energy prices.

Poly Vinyl Chloride prices declined in the Chinese market during the first week of May. According to the ChemAnalyst database, Poly Vinyl Chloride (PVC) price decreased by nearly week on week declination of 2% in China on 6 May.

With relaxation in the number of Covid cases and slight relief from lockdown restrictions, prices in China were seen eased up. The primary factors for lower prices of Poly Vinyl Chloride include improvement in the production activity and low demand from the downstream industries.

Moreover, rerouting in the shipments from Shanghai, the largest container terminal in China, amid container shortage and disrupted operations conclusively affected the export activity for Poly Vinyl Chloride and resulted in reduced prices in China's domestic market.

In Europe, prices of upstream natural gas influenced the costs of Poly Vinyl Chloride. Ample supplies and warm weather resulted in gradual bearish sentiments for natural gas prices in the European market.

The slower price movement of Natural gas resulted in a decline in the prices of feedstock Ethylene costs in the European market. The low-down price of feedstock Ethylene and slow demand from downstream segments contributed to the reduction in Poly Vinyl Chloride prices in the region.

As per ChemAnalyst, "Prices of Poly Vinyl Chloride are anticipated to decline in China due to further lower demand from the end-user Construction segment. Furthermore, production activity is likely to improve amid relaxation in the COVID 19 cases in the Country. Meanwhile, Poly Vinyl Chloride cost in Europe is expected to decline due to slow demand from the end-user sector." 

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