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Stable Prices of US PVA Amid Weak Acetic Acid Support, Outlook Appears Optimistic for Q2 2024
Stable Prices of US PVA Amid Weak Acetic Acid Support, Outlook Appears Optimistic for Q2 2024

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

Texas (USA): The prices of Polyvinyl Alcohol (PVA) in the US market were stable. This development was due to weak cost support from the feedstock Acetic Acid. As the PVA manufacturers were operating at a stable rate amid adequate demand from downstream industries like the textile industry as of now. The overall manufacturing sector in the US has been on a decline for several months, but now, due to lowering inflation and increased economic stability, demand from several downstream sectors like the textile industry is picking up, leading to firm downstream inquiries.

Furthermore, Natural Gas prices are expected to be lower due to slower economic recovery globally, leading to lower production costs. Anticipating this, the prices of PVA are likely to increase on the backdrop of rising prices of Acetic Acid. Furthermore, PVA’s upstream Crude oil is likely to rise due to OPEC+ deciding to cut production, which will eventually lead to tight supply of oil in the market, leading to higher production costs.

In the European market, the prices of PVA have shown an increasing trend as of this week. This development was due to an increase in the prices of imports from the international market like the Chinese market. As the prices of PVA’s Feedstock Vinyl Acetate Monomer (VAM) have risen due to the rise in the prices of Acetic Acid.

Moreover, demand from downstream industries like Textile industries was on the higher side leading to higher downstream inquiries. Continued lower inflation and improved economic conditions have further led to positive development in the downstream textile sector. Anticipating this, the price of PVA is likely to rise in the European market amid rising prices of imports from the international market. As the OPEC+ has decided for production cuts leading to speculation of a rise in prices of upstream oil leading to higher production costs for PVA in exporting nations.

Furthermore, the prices of Feedstock VAM are likely to rise amid rising upstream oil prices; this trend will be transmitted downstream eventually to Acetic Acid and then to PVA’s Feedstock VAM. European Union policymakers have recently implemented a direct prohibition on the destruction of PVA’s downstream textiles and footwear, albeit with exceptions for small, micro, and medium-sized enterprises.

The European Environment Agency (EEA) offers an overview of the current understanding of the quantities and destruction of returned and unsold textiles within Europe in a briefing. The rise of online shopping, flexible return policies, evolving consumer preferences, and the adoption of fast-fashion strategies in Europe have contributed to an increase in the volume of returned and unsold textiles. In recent years, both fast fashion and luxury brands have been implicated in the destruction of returned or unsold clothing, shoes, and other textile products.

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