Weak Downstream Demand Turns the Global Poly Vinyl Chloride Market Gloomy
Weak Downstream Demand Turns the Global Poly Vinyl Chloride Market Gloomy

Weak Downstream Demand Turns the Global Poly Vinyl Chloride Market Gloomy

  • 11-Nov-2022 6:59 PM
  • Journalist: Motoki Sasaki

Poly Vinyl Chloride (PVC) prices continued a declining trend across the global market due to persisting slump in demand from the downstream sector. High inflation weighs global commodity consumption and raises supply-based uncertainties. Meanwhile, the rise in Chlorine production led to the growing availability of PVC inventories in the warehouses, easing the impact of ongoing production cuts in Europe.

The European PVC market maintained a downward trend in the week ending 11 November 2022, owing to weak consumer confidence in the commodity. The lower export prices and rising inventories in European countries such as Turkey amidst muted US new offers impacted the price momentum of PVC. The gloomy demand outlook kept the PVC market sentiments bearish, with high recession fears amongst the buyers in the region. Moreover, the upcoming winter season in Europe further diminished the commodity's buying interest. Besides, as per the latest insights, Petkim, a domestic producer, plans to resume PVC manufacturing by mid-November 2022 in Turkey.

On the supply side, on Thursday, the workers' end of strike action at Liverpool port will further ease the supply uncertainties in the European region.

In China, the PVC market experienced stable prices in the second week of November 2022, backed by the weak domestic consumption in the construction sector with a slump in housing inquiries and poor export demand. The Chinese economy was struggling with rising inventories and faced a real estate crisis amid a collapse in the country's construction sector affecting the pricing momentum of PVC this week.

As per ChemAnalyst analysis, the prices of PVC in the global market will likely decline further with a rise in inventories and weak demand fundamentals during November 2022. The European PVC market is expected to be impacted by stable consumer confidence in the product and a surge in production activities. In addition, Poly Vinyl Chloride prices are anticipated to be lower in Asia, with undelivered stocks and weak real estate in the region.

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