Polyvinyl Alcohol Continuing Downward Price Trend in China
- 11-Aug-2022 1:49 PM
- Journalist: Nina Jiang
Tianjin, China: Over the past several weeks, the cost of Polyvinyl Alcohol has sharply fallen in the Chinese market. The market sentiments toward Polyvinyl Alcohol have remained the same for the current week. It is unlikely that the Polyvinyl Alcohol market will soon experience a resurgence. In line with reducing market activity, manufacturers have been limiting their profit margins to sell off their stocks. Across the nation, the purchase rate of Polyvinyl Alcohol is lower than expected. Consequently, the market value of Polyvinyl Alcohol is forced to follow a downward trend consistently.
Due to low start-up and manufacturing costs, the region's Polyvinyl Alcohol market has been shrinking. The price of the upstream components, such as the feedstocks Vinyl Acetate Monomer (VAM), has been significantly plummeting. Hence, the market value of Polyvinyl Alcohol has been falling. Insufficient enterprise transportation has also been identified as a significant factor in the dramatic drop in the market value of Polyvinyl Alcohol.
The product's diminishing value is also a result of the weak downstream demand for Polyvinyl Alcohol from the textile, paper, and food packaging industries. There is a solid supply and an excess inventory for Polyvinyl Alcohol, which isn't in high demand. Together, these factors have been influencing the market and deducting the cost of Polyvinyl Alcohol. As a result, the market's motivating factors have been slumping, and the negative trend has been worsening, leading to the current situation in the Polyvinyl Alcohol market.
As per ChemAnalyst anticipations, "The Polyvinyl Alcohol market will show a plunging pricing trend over the coming weeks. Furthermore, until demand from end-user industries, such as textile, paper, and packaging, recovers, the price trend for Polyvinyl Alcohol will remain downward. However, if the cost pressure increases and the price of the feedstock Vinyl Acetate Monomer (VAM) and upstream Acetic Acid escalates, the cost of Polyvinyl Alcohol would likely increase."