Global PVC Market May Take a Bullish Turn in November 2023 Amidst Meagre Inventories
- 25-Oct-2023 3:25 PM
- Journalist: Schmidt
The Polyvinyl Chloride (PVC) prices showed signs of resilience and recovery at the termination of October 2023 and for November amidst high production costs in line with the shortage of inventories to fulfill recent downstream global demand. Meanwhile, the upstream Ethylene producers also tend to benefit from the higher oil prices amid their reliance on the oil-based market. The oil price escalation in the previous weeks was followed by the attack by Hamas on Israel and is expected to be temporary. These supply constraint-related factors along with the elevation in the downstream demand, are anticipated to affect the PVC price dynamics in the global market in the coming weeks of the last quarter of the year.
The Asian PVC players anticipate a bullish market outlook in November 2023 as the Taiwanese major producers opted to reduce production run rates for November 2023. The regional PVC market has undergone a shift in prices during the latest week of October 2023, marking a revival amidst rebounding downstream construction industry demand and shortage of stocks after two consecutive months of declination. However, the PVC price trend in the week ending October 20, 2023, witnessed a dip due to the new orders bottlenecks related to the demand in the downstream construction market and adequate supplies in the APAC region.
The PVC prices in the USA will likely rise in November 2023 as the production costs seem to be higher amidst surging upstream Ethylene values and persistent WTI crude oil prices on the upward side. From the demand perspective, the US new homebuilding sector is expected to rebound slightly, prompting a rise in the PVC demand in the nation's construction industry after witnessing low consumer confidence throughout October 2023 amidst high mortgage rates. Conclusively, the PVC prices show signs of a surge in the USA for November amidst high production costs in line with the upstream Ethylene prices' reliance on crude oil value fluctuations.
As per the ChemaAnalyst, Conclusively, the PVC prices may rise in November 2023 across the globe on account of constrained supplies and inclination in the downstream construction industry procurement activities in the line of seasonal consumption for the time being. Additionally, the production challenges may elevate the PVC price dynamics amidst the elevation in the operational costs in the line of a surge in the crude oil future values and feedstock Ethylene costs in the line of production cuts in the global market.