Polyvinyl Chloride Prices Expected to Take an Upturn in China Amid Force Majeure by Major Player
- 03-Dec-2021 11:54 AM
- Journalist: Li Hua
The prices of Polyvinyl Chloride (PVC) are expected to rise in China due to supply pressure which will be building up with the announcement of Force Majeure (FM) by Qingdao Haiwan Group on the supplies of PVC from its plant in China. The PVC plant which has undergone a FM has a production capacity of 800 Kilotons per year. The price of PVC were falling this week in China with the prices assessed at USD 1790 per tonne for suspension grade PVC which have fallen from the USD 1830 per tonne levels in the last week of November.
The prices are expected to rise by a factor of 5% to 7% in the upcoming week as there will be supply shortages. On the other hand, the demand for PVC from the construction sector in China remains strong. This will also push the prices upwards in the upcoming week.
PVC is a polymeric material which has major application in construction sector and automotive sector. There are mainly three grades of PVC which include pipe grade, suspension grade, and flexible grade PVC. The global demand for PVC reached around 43 million tonnes in 2020 and is expected to grow at a CAGR of around 4% in the upcoming years till 2030.
As per ChemAnalyst, the FM by Qingdao Haiwan Group will surely be affecting the domestic supplies in China as the group holds a major market share in the domestic market of China with a huge production capacity of 800 KTPA. The supply shortage is poised to trigger a price rise in PVC which was experiencing a price decline since the past three to four weeks. Therefore, the prices are expected to rise in the upcoming week in China.”