Polyvinyl Alcohol Prices in US Decline Amidst Slower Recovery from Textile Industry
Polyvinyl Alcohol Prices in US Decline Amidst Slower Recovery from Textile Industry

Polyvinyl Alcohol Prices in US Decline Amidst Slower Recovery from Textile Industry

  • 02-Apr-2024 3:53 PM
  • Journalist: Rene Swann

Polyvinyl Alcohol (PVA) prices in the US market have experienced a decline primarily attributed to inadequate support from the feedstock Vinyl Acetate Monomer (VAM). However, despite this challenge, PVA manufacturers have effectively sustained stable operations, largely owing to recovery in demand from downstream industries like textiles but recovery was at slower pace. With the prevailing upturn in US manufacturing, recent improvements in economic stability coupled with a decrease in inflation have spurred heightened demand across various downstream sectors, particularly textiles, leading to a surge in inquiries. Moreover, forecasts indicate a potential rise in energy prices because of the global economic recovery gaining momentum. This anticipated increase in production activity could subsequently result in increasing production costs as the energy/raw material prices are expected to rise, consequently bolstering PVA production cost. Additionally, the impending implementation of production cuts by OPEC+ is poised to elevate PVA upstream Crude oil prices.

Furthermore, the ongoing availability of cheaper textile imports from Asian countries poses a significant challenge to the domestic textile market in the USA, further impacting the dynamics of PVA pricing and demand. Domestic PVA plants have succeeded in maintaining a stable operational rate. Additionally, there have been no notable disruptions reported in the supply chain, further contributing to the stability of operations. Furthermore, the key economic indicators (for manufacturing activities) value for the US market has exhibited an uptick from February to March 2024, with similar increasing trends anticipated to continue into April 2024. This growth is in alignment with the abundant domestic supply of inventories available in the market. The surge in manufacturing activities is credited to plants running at optimum capacity, resulting in an overall high level of inventories within the US market.

Despite encountering temporary setbacks amid the Covid pandemic, PVA downstream industries such as the textile sector have been gradually rebounding. However, the pace of this recovery has been sluggish, contributing to an overall sense of pessimism in the market. Similarly, the textile industry has begun to display signs of improvement, albeit at a leisurely rate. The National Council of Textile Organizations (NCTO) has conveyed to the US International Trade Commission (USITC) the emergence of five Asian nations as primary suppliers. The NCTO attributes this phenomenon to their "ultra-low-cost pricing structures" and close ties with China, which have negatively impacted the US domestic apparel and PVA downstream textile sector, consequently resulting in diminished demand from PVA downstream industries.

Related News

Polyvinyl Alcohol Prices Stable Amid Weak Feedstock Cost and Sluggish Downstream Demand
  • 13-May-2024 4:08 PM
  • Journalist: Patricia Jose Perez
Polyvinyl Alcohol Prices Remained Steady Amidst Subaverage Textile Industry Performance
  • 03-May-2024 4:12 PM
  • Journalist: Bob Duffler
Stable Prices of US PVA Amid Weak Acetic Acid Support, Outlook Appears Optimistic for Q2 2024
  • 06-Mar-2024 5:01 PM
  • Journalist: Motoki Sasaki
Polyvinyl Alcohol Prices Rise in the US And Germany, Similar Trend Expected in February 2024
  • 05-Feb-2024 2:44 PM
  • Journalist: Nina Jiang