The PVC Price to Reflect Bullish Trend Across the Globe in February 2023
- 08-Feb-2023 4:14 PM
- Journalist: Patricia Jose Perez
Polyvinyl Chloride (PVC) showed an upward price trend, with increasing demand and tight supplies in the global market in January 2023. Further, rising import inquiries after the end of the lunar holidays in the Chinese market and limited stock availability are likely to contribute to the rise in PVC prices during February 2023. The PVC supply and demand enhanced with the stocking up tendency of inventories amongst the market players.
The February export costs of PVC resin rose in the Asian market with expanding demand from India due to the approaching seasonal demand from the agriculture pipe segment and constant offers from the construction sector. The tightening of the supply-demand situation is leading to a strong tendency to build up inventories amongst the PVC market players in anticipation of further higher prices after the mid of February 2023. On the other hand, Chinese domestic demand lacked momentum for PVC due to declining real estate offers and the economic downturn squeezed international inquiries in the country. However, as per the latest insights, with the expected recovery of the Chinese economy and the ease of COVID related uncertainties, the PVC price trend might show northward movement in February 2023.
On the other side, the PVC resin prices saw a slow growth in January 2023 in the North American market, backed by tight supplies amid the cold season and firm demand from the construction sector. Meanwhile, European PVC drops paused entering February 2023, with a hike in the upstream Ethylene prices. Therefore, the price of PVC for suspension calendering grade K57 was quoted at USD 1808/MT in the first week of February 2023.
As per the ChemAnalyst, the PVC resin prices are expected to show an elevation at the end of the Q1 of 2023, backed by the expensive imports, limited inventories, and high demand in the downstream construction industry. Sellers believe that domestic demand for PVC will rise with the end of festival holidays in China amid tight supplies.