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Global PVC Market Struggles with Price Fall and Uncertain Economic Environment in April 2023
Global PVC Market Struggles with Price Fall and Uncertain Economic Environment in April 2023

Global PVC Market Struggles with Price Fall and Uncertain Economic Environment in April 2023

  • 27-Apr-2023 3:42 PM
  • Journalist: Rene Swann

In April 2023, the global Polyvinyl chloride (PVC) experienced a negative price revision after multiple rollover by market participants, although some players still maintained their flat offers. In previous months, sellers had attempted to increase prices under the optimism of market's firmness, but this push proved unsuccessful, and PVC prices decreased in April. This drop was due to a combination of factors, including a lack of buying interest and a surplus of PVC supplies in the market.

As per the recent assessment, European PVC suppliers have been forced to reduce their prices in mid-April as a result of sluggish demand and affluent supplies. Moreover, buyers remained hesitant to pay more, and inflation impacting downstream sectors such as construction, automotive, and footwear weighed on the price hike attempts in the commodity. Furthermore, macroeconomic and geopolitical uncertainties continue to place pressure on global demand, while major market players experiencing sluggish purchasing interest. Despite the recent price concessions, purchasing activity has not shown significant change since the Easter holidays. The challenges faced by PVC suppliers in Europe continue to mount, as they navigate an uncertain market and work to balance supply and demand.

In the USA, the major PVC manufacturer “Dow” reported declined financials in the first quarter of 2023, citing "slower global macroeconomic activity" as the reason for the recent PVC price drops. The decrease in sales and profits for Dow Inc. reflects the challenging global economic environment, with macroeconomic factors weighing on the company's performance. The packaging and plastics industries have also been affected by supply chain disruptions and inflationary pressures, making it difficult for companies to maintain profitability impacting the final US PVC prices in the middle of the month.

As per ChemAnalyst, the monthly rise in the upstream Ethylene settlements and tightness in the global supplies of crude oil is expected to impact the pricing dynamics of PVC in May 2023. Although it is too early to speculate, market participants believe that PVC increases may not be feasible unless supply-demand situations improve in the near term.

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