For the Quarter Ending March 2024
North America
The first quarter of 2024 has been a positive period for Chlorinated Polyvinyl Chloride (CPVC) prices in the North America region. In Mexico, prices of CPVC have seen significant increases, with a monthly price change of +8% recorded in February. This can be attributed to several factors. Firstly, there has been high domestic demand from the construction industry, fueled by investments in infrastructure projects and nearshoring activities. The construction sector in Mexico has seen healthy growth, with investment in construction projects increasing by 19.7% in 2024. This strong demand has put pressure on the downstream plumbing sector, leading to price inflation for CPVC.
Additionally, prices of feedstock Vinyl Chloride Monomer (VCM) have been increasing in the exporting US market, which has further driven up the prices of CPVC. The US construction industry has also been performing well, contributing to the higher demand for CPVC and supporting the price increases.
Overall, the pricing environment for CPVC in the North America region has been positive, with prices rising due to strong demand from the construction industry. The Mexican market has seen the maximum price changes, with prices increasing by approximately 8% in February.
Asia
The first quarter of 2024 has presented a mixed pricing landscape for Chlorinated Polyvinyl Chloride (CPVC) in the APAC region, with notable variations observed across different countries, particularly in China. In Asia, CPVC prices experienced a significant decline of nearly 11% in February 2024. This sharp decrease can be attributed to several factors. Firstly, Chinese manufacturing activities were largely halted as manufacturers prepared for the holiday season, resulting in destocking activities and an oversupplied market. Secondly, the sluggish performance of the construction sector in China, marked by declining property sales and reduced exports of construction goods, contributed to low demand and surplus supplies in the domestic market. This decline in prices was further exacerbated by reduced international orders from importing markets, compounded by disruptions at key waterways such as the Red Sea crisis and drought conditions at the Panama Canal, hindering Chinese suppliers' ability to export inventories internationally. Consequently, inventories piled up at Chinese ports, leading to price declines. Across the APAC region, CPVC prices have been influenced by the prices of key feedstocks like Ethylene Dichloride (EDC) and Vinyl Chloride Monomer (VCM). In China, rising prices of these feedstocks have elevated production costs, thereby increasing CPVC prices. Overall, the pricing environment for CPVC in the APAC region has been negative, with China experiencing significant price drops. The construction sector has played a crucial role in driving demand, with varying levels of activity observed across different countries and a slow recovery of the construction sector in the domestic Chinese market, resulting in subdued trading activities as suppliers hesitated to restock inventories. The impact of feedstock prices has also influenced pricing trends. As of the end of the quarter, the price of CPVC Pipe Grade K-67.4 FOB Qingdao in China stands at USD 1750/MT.
Europe
In the first quarter of 2024, Chlorinated Polyvinyl Chloride (CPVC) prices in the European region have shown fluctuations, influenced by various factors. In Germany, CPVC prices rose by 1.1% due to increased prices of feedstock Ethylene Dichloride (EDC), which raised production costs. However, the German construction sector has experienced a significant downturn, resulting in low demand for CPVC. Similarly, in the British market, CPVC prices increased by 1.5% due to higher EDC prices in the exporting German market. The underperforming construction sector in the UK has also contributed to low CPVC demand. Conversely, CPVC prices in the Netherlands decreased by 3.2% due to the influx of inexpensive imports from the exporting German market. The Dutch construction sector has also been contracting, leading to decreased CPVC demand. However, there have been some positive developments in the Dutch market, with improvements in demand from the manufacturing sector. Overall, the pricing environment for CPVC in the European region has been negative, characterized by low demand from the construction sector and rising production costs. The market has been affected by the overall decline in the construction industry and the challenges faced by manufacturers. In conclusion, the latest quarter-ending price for CPVC Pipe Grade K-67.4 FD Amsterdam in the Netherlands is USD 1999/MT.
South America
The South American CPVC market has mirrored the market situation in North America. Initially, robust construction activities in the US and Mexico led to the influx of costly CPVC imports into South America. The South American CPVC market was influenced by the increased prices of feedstocks EDC and VCM in the exporting North American market, alongside elevated shipping rates due to disruptions at key shipping routes, resulting in the arrival of expensive inventories in Brazil. Moreover, Brazil's construction sector has largely maintained stability, supported by government programs, although activities slowed in February and March due to seasonal rainy weather. Internal challenges, such as irregular gate opening times at the port of Santos, have further hindered CPVC circulation. However, the manufacturing sector's positive demand for CPVC, which continued to expand during the quarter, played a significant role in driving the Brazilian CPVC market. Overall, CPVC prices across the South American market increased by approximately 11% during the opening quarter of 2024 compared to prices at the end of the previous quarter in 2023 and the conclusion of the first quarter in 2024.
For the Quarter Ending December 2023
North America
The Chlorinated PVC market in North America exhibited overall favorable conditions, with prices initially experiencing a decline in October but subsequently increasing in November and December of the fourth quarter of 2024.
The initial decrease of 2.5% in October was attributed to reduced demand from the plumbing industry within the construction sector, influenced by a decline in house sales due to elevated mortgage rates. However, a positive rebound occurred in the remaining period of the fourth quarter. This resurgence was driven by a thriving construction sector in the United States, marked by increased hotel construction, rising prices of feedstocks VCM and EDC, and heightened demand from the importing Mexican market.
The construction sector in Mexico displayed robust performance, supported by the Mexican government's elevated investment in construction and a sustained increase in employment during the entire fourth quarter of 2023, driven by growing nearshoring activities. This contributed to an enhanced market scenario for Chlorinated PVC, particularly in the plumbing sector. Toward the end of 2023, price increases were notably influenced by challenges in the existing supply chain system, exacerbated by adverse weather conditions across the United States. This led to extended lead times and constraints in logistics and transportation.
APAC
The Chlorinated Polyvinyl Chloride (CPVC) market in the APAC region during the fourth quarter of 2023 experienced significant influences from various factors. Firstly, there was notable demand for CPVC in the Indian market, propelled by robust performance in the construction industry and heightened manufacturing activities, resulting in a corresponding 1.1% increase in prices. Conversely, in China, CPVC demand remained subdued due to sluggishness in the construction and industrial sectors, leading to a 2.5% price decrease. The prices of essential feedstocks, Ethylene Dichloride and Vinyl Chloride, played a pivotal role in shaping CPVC prices. A decline in PVC prices contributed to a reduction in CPVC prices. No specific plant shutdowns were reported during this quarter. Specifically in China, CPVC prices experienced a 3.8% decrease, reflecting a bearish market situation characterized by high supply and low demand. The underperformance of the construction industry and inventory accumulation were contributing factors to the declining prices. Anticipated increases in feedstock PVC and crude oil prices added further complexity to the CPVC market outlook. In summary, the CPVC market in the APAC region during the fourth quarter of 2023 was characterized by divergent demand dynamics in India and China, coupled with fluctuations in feedstock prices. CPVC prices in China saw a decrease of 3.8%. The latest price of CPVC Pipe Grade K-67.4 FOB Qingdao in China for this quarter is USD 1900/MT.
Europe
The Chlorinated Polyvinyl Chloride (CPVC) market in Europe encountered notable influences during the fourth quarter of 2023, driven by significant factors. Firstly, demand from the downstream construction industry remained subdued, with the residential sector exhibiting particular weakness. This decline was attributed to factors such as diminishing housing permits, project cancellations, and delays in decision-making by clients. Secondly, CPVC supply levels were moderate, with restricted inflows into the Dutch market as manufacturing facilities operated at reduced capacities. Furthermore, an increase in inflation rates in the Netherlands during November contributed to the increment in CPVC prices. In the Netherlands, the quarter-ending price of CPVC Pipe Grade K-67.4 FD Amsterdam stood at USD 1890/MT. Overall, the Chlorinated PVC market situation in Europe remained highly unfavorable, despite witnessing moderate price increments. These increments are predominantly linked to the overarching decline in industrial chemical production, resulting in supply shortages. Additionally, elevated quotations provided by traders, aiming to enhance profit margins amidst the deteriorating construction industry, which persisted in retrenchment until December 2023, further influenced the pricing dynamics.
South America
The market dynamics of Chlorinated PVC within the South American region exhibited a predominantly mixed trend during the final quarter of 2024. Initially, the product prices faced adversity due to the underperforming construction industry and an oversupplied market originating from the United States. However, a gradual improvement in demand from the construction sector occurred as investments in construction activities persisted, though the overall outlook remained dull. Confidence in investments remained positive due to the establishment of electric automotive factories in Brazil, contributing to an increase in product prices during the initial two months of the last quarter of 2023. However, by December 2023, the Chlorinated PVC market became highly competitive, with imports from Asian and European markets entering Brazil. The average price of Chlorinated PVC in December turned out to be lower than that of November 2023, driven by increasing input costs in the exporting US markets, prompting traders to source from Asian and European markets. Additionally, fluctuations in the Brazilian Real also impacted Chlorinated PVC prices in Brazil, with the Brazilian Real appreciating by 0.58% against the USD in December 2023.
For the Quarter Ending September 2023
North America
Prices of Chlorinated PVC witnessed a bearish trend in the North American market, with prices of the product depreciating by more than 10% throughout the third quarter of 2023, despite prices of feedstock PVC inclining by almost 10% and prices of Chlorine increasing almost 6%. Demand from the downstream industrial circulation was largely low as industrial activities declined, and construction activities were largely halted due to rising interest rates. Mortgage rates climbed to almost 7% for a 15-year term. Low construction activities had a detrimental impact on the consumption of the product, which consequently caused an accumulation of inventories that had to be sold at negotiable rates, which further diminished profit margins. Moreover, demand from the international markets was also not strong as prices of the product declined in the declined in the importing markets of Mexico and South America. Demand from the downstream fluid circulation industry gradually strengthened as the moderate recovery of the economic situation caused a shrinkage in the backlog of orders as employment rates increased. However, this improvement did not prove to be sufficient to transform the current bearish situation and improve the prices of the product.
APAC
Prices of Chlorinated PVC have witnessed a bearish situation and depreciated by more than 15% in the Asian market despite prices of feedstocks, Calcium carbide, and PVC increasing by almost 11% and 6%, respectively, throughout the third quarter of 2023. Demand from the downstream construction and industrial fluid circulation sector was simply not present, as uncertainties in the economic conditions have prevented any optimistic purchasing activities. With China’s economy entering deflation in July 2023 and industrial activities also declining, major manufacturers found no room to maintain profit margins. Declining industrial activity prevented the consumption of the product, and the improvements in the purchasing sentiments of the Mid-Autumn festival were not sufficient to transform the current market situation of the product. An oversupplied market largely existed as major construction firms based across Southeast Asia filed for protection against bankruptcies. Demand from the international markets was also low as the performance of the construction industry was poor throughout the third quarter of 2023.
Europe
Prices of Chlorinated PVC witnessed a bullish market situation and increased by approximately 4% in the European market throughout the third quarter of 2023. The prime reason for the increment in the prices was attributed to the increasing prices of caustic soda, which also appreciated by almost 6%, which consequently led to increasing prices of feedstock Chlorine. Demand from the downstream industrial sector was largely unhealthy amidst minimal production rates. Supplies of the product were recorded to be low as industrial activity declined for the fifth consecutive month across the Eurozone, and problems in supply chain systems surfaced. Water levels of the river Rhine fluctuated, which prevented the inflow and outflow of the cargoes, and the railway system across Germany suffered, with large parts requiring heavy maintenance and currently facing a shortage of staff. Interest rates were recorded to be high, with inflation rates being around 6% across the Eurozone. The overall undersupplied market created by rising feedstock prices, slumping industrial activities, and problems in the supply chain system being resurfaced, led to an overall increment in the prices.
South America
Prices of Chlorinated PVC declined by approximately 15% in the South American market despite production costs increasing in the exporting North American due to high feedstock costs, which consequently led merchants to place limited orders of imports into the South American market. Demand from the downstream industrial sector remained low as industrial activities again retreated to contraction after expanding for five consecutive months. Procurement activities were largely minimal as production costs soared in the United States as the Federal Bank continuously hiked interest rates to curtail inflation rates across the United States. This consequently led to increments in the factory gate charges and input costs, which resulted in expensive imports into the South American market. With demand being largely moderate and imports being largely expensive, merchants did not feel confident in placing bulk orders. As demand for the product waned, the consumption rates also diminished, leading to the accumulation of the product, which had to be mitigated by clearing out existing inventories at discounted prices.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, the CPVC market in North America faced a bearish trend. Despite some positive signs at the beginning, such as a slight improvement in the US economy and increased purchasing activities from the construction sector, the overall situation was overshadowed by various factors. Notably, the prices of CPVC's upstream PVC depreciated due to multiple reasons in the US market. Firstly, the economic growth was not strong enough, and uncertainties regarding a potential US economic recession persisted. This contributed to keeping the market low during the mid-quarter period impacting the CPVC pricing dynamics in the US market. At the same time, the supply of CPVC remained moderate by the end of the quarter and accelerated by the subsidization of production costs through decreasing raw material and crude oil prices. However, the demand for CPVC was largely slow, primarily because of muted export orders from international markets. This decline in demand was influenced by the Federal Reserve's decision to increase interest rates by approximately 5%, affecting international trade. In conclusion, the bearish market conditions for CPVC in North America during the quarter ending June 2023 were driven by a combination of economic uncertainties, fluctuating raw material prices, and subdued demand from the international as well as the domestic market.
APAC
The overall market situation for CPVC showed mixed sentiments during the second quarter of 2023 in APAC, with a rise in May, and then again a plunge in the price trend during June of the product. The increase in the demand from the construction industry during May 2023 was followed by a marginal gain in the market momentum of the housing segment during this quarter. Towards the middle of the second quarter of 2023, imports from the export markets also saw a decline along with the volatility in the prices of crude oil, which further disrupted production. The increment in the prices of the commodity was primarily attributed to the rise in the demand from the downstream industry as purchasing activities of the consumer increased substantially, despite a slow economic recovery of the overall Asian market and expensive supplies from China due to reduced production run rates. At the end of the quarter, the supply remained moderate as manufacturers found themselves with adequate inventories, and production ran smoothly due to a fall in the prices of crude oil. The demand from the construction sector was also stable, supporting the final price trend of CPVC by the end of the second quarter of June 2023.
Europe
The costs of CPVC saw a deterioration in the second quarter of 2023 in Europe due to the low market exchanges in the European market because of elevated inventories combined with ease in the upstream PVC costs and low downstream inquiries. The primary factors behind this devaluation were concluded as the high-interest rates prompted housing segment demand and the lowered commodity offers in the construction sector. Moreover, the southward CPVC prices were supported by the traders with excess stocks, which must be radiated at limited costs, accordingly reducing profit margins amidst minimal export demand and a hike in the interest rates, and a surge in the Consumer price index by the European Bank. Additionally, the fear of the European economy entering a recession kept buying sentiments from the downstream construction industry low for the commodity. Supplies were consistent toward the end of the second quarter of 2023 due to the decrease in the offtakes in the domestic as well as in the downstream buying activity in the European market.
For the Quarter Ending March 2023
North America
Due to large stocks and sluggish demand in the downstream construction and other competitive sectors, the price of CPVC in the USA showed a downward trend in the quarter ending March 2023, falling 3.3% quarterly. Additionally, the CPVC offers in the US market were hampered by rising interest rates and pessimistic customer purchasing attitudes. The CPVC businesses also experienced competitive cost pressure in the US domestic market amid falling PVC prices and had an impact on the commodity's final negotiations this quarter. Additionally, the vinyl monomer value chain, including CPVC, saw input cost pressure at the end of the first Quarter of 2023 due to the volatility in upstream crude oil prices.
APAC
In Asia, CPVC prices showed An upward trend with a rise in the downstream momentum in the quarter ending March 2023, as limited availability of stocks and competitive offers pressured commodity prices northward. The CPVC inquiries surged in the domestic as well as in the international market, and the enterprises felt input cost pressure amidst volatility in the crude oil prices in the APAC market. However, purchasing sentiments varied at the termination of March 2023 as some market players cited low-cost products from Asia combined with competitive freight rates. The major factors that affected the CPVC discussions this quarter comprised an increase in the demand from the construction sector in the expectations of rising housing segment demand in the Indian market.
Europe
The German CPVC market saw a prolonged decline in the quarter ending March 2023, along with a recent drop in the price trend at the end of March 2023. Due to sluggish demand from the construction industry amidst the weakening of the housing market of the region, CPVC prices fell in Germany. Consumers of CPVC experienced financial strain as a result of the rise in interest rates and the cost-of-living problem this quarter, impacting the commodity discussions. With high supplies, slow demand, and declining PVC prices in Asia, the imports from Turkey and other European nations have not improved in the CPVC negotiations for April. European market participants were trading restricted to the fulfillment of necessities due to high inflation and weak economic growth.
For the Quarter Ending December 2022
North America
The CPVC ( Chlorinated Poly Vinyl Chloride) prices showed a downward trajectory throughout the quarter ending December 2022, owing to the muted downstream demand from the construction sector amid a fall in the US real estate market and a slump in the feedstock PVC Resin prices. High inflation weighed on the buying interest in the domestic market and led to curtained production activities in the region. The low consumer confidence affected the CPVC market substantially in the last quarter of 2022. With ample availability of stocks, Formosa Plastics went for maintenance shutdown in Baton Rouge (USA) in December and November for ten days in this quarter by reducing feedstock PVC capacity.
APAC
The CPVC prices were low throughout the last quarter of 2022 in the APAC region. The product price trend was impacted by the weak downstream demand amid rising input cost inflation and subdued customer confidence in the building sector. The freight charges and overall feedstock PVC costs have been affected by the muted market activity as a result of the September Typhoons in various Asian countries coupled with COVID lockdown measures. The need basis buying sentiments and sluggish economic conditions in the global market led the product prices to follow a negative trend. Meanwhile, the CPVC manufacturer DCW Ltd. Announced to increase in the capacity of the commodity in the Indian market by commissioning a new unit in FY24. Therefore, the price of CPVC was assessed at USD 1735/MT Ex-Tuticorin (India) for pipe grade K-67.4 in December 2022.
Europe
The CPVC prices witnessed a downward trend in the Q4 of 2022, owing to the adequate availability of stocks and weak downstream construction demand in the region. Meanwhile, volatility in crude oil prices and lower feedstock PVC prices has affected the value chain of CPVC amidst the European energy crisis and downstream market uncertainties in this quarter. In addition, the bearish market sentiments for CPVC in the regional market compelled the market players to limit the profit margins in the region and destock piled-up inventories at lower prices. The ease in the feedstock PVC prices and lower downstream construction sector inquiries in the European market remained the primary factors for the plunging price movement of the commodity.
For the Quarter Ending September 2022
North America
Chlorinated Poly Vinyl Chloride (CPVC) prices witnessed a fall in the third Quarter of 2022. The weak demand from the downstream construction sector and lower upstream feedstock Polyvinyl Chloride (PVC) prices were the main factors for the deteriorated price movement of the commodity in this Quarter. The sluggish downstream construction demand resulted from the squeezed house-building activities in the region, impacting the prices of the commodity. Moreover, the CPVC prices dropped amidst sufficient availability of inventories in the Quarter ending 2022. In addition, the tensions on the west coast port have also contributed to the declining trend of CPVC in North America. The price of CPVC has dipped to USD 1960/ton in the USA in September 2022.
APAC
Chlorinated Poly Vinyl Chloride (PVC) prices led to mixed sentiments in the APAC region during the Q3 of 2022, backed by the sluggish downstream demand. Consumer confidence was insufficient for the product in the construction sector of India due to surging inflationary pressure, impacting the CPVC prices. Since Q2, weakened market activities have affected APAC region freight charges and overall material costs. In addition, September Typhoons such as Hinnamnor Storm in several Asian countries resulted in a bearish market situation for the products like CPVC as the buyers indulged in buying only on a need basis in this period. Meanwhile, the price of feedstock PVC deteriorated by nearly an average of 9% during the Quarter ending September 2022, affecting the pricing dynamics of CPVC in India. Thus, the price of CPVC settled at USD 1874/ton in China in September 2022.
Europe
The overall price trend of Chlorinated Poly Vinyl Chloride (CPVC) showed a downward movement in the European region during Q3 2022, backed by the slumped domestic offers from the downstream construction sector in the region. Persistently upstream energy costs have remained high, and the Russian energy and oil supply bottleneck remained a critical issue for the producers in the market. The region's escalating inflation rate affected the buying interest of PVC buyers. The traders struggled with piled-up stocks and made sales at reduced profit margins in the Quarter ending September 2022. Moreover, ease in the feedstock PVC prices also remained the key factor in negotiating CPVC prices in the market. Therefore, the price of CPVC is quoted at USD 2062/ton in the German market in September 2022.
For the Quarter Ending June 2022
North America
Chlorinated Poly Vinyl Chloride maintained an upward trajectory during Quarter 2 of 2022. The soaring demand from the downstream PVC segment led to a surge in CPVC prices. Moreover, fluctuations in crude oil values amid geopolitical tension between Russia and Ukraine also contributed to the consistent surge in the CPVC costs. Meanwhile, demand from downstream industries such as construction and packaging was firm in the USA domestic market in the second quarter. Shortage of raw material Chlorine amid hampered production activities in the US due to high inflation and force majeure in Primary Chlor Alkali plants such as Olin and Westlake led to high costs of CPVC. Enterprises indulged in passing the cost burden to the consumers to sustain better margins.
APAC
The price of Chlorinated Poly Vinyl Chloride showcased a declining trend in the Asian market throughout Quarter 2 in 2022 due to fluctuations in upstream crude oil prices in the APAC region. Additionally, weak demand for downstream PVC because of high inflation and COVID lockdown restrictions in several Asian countries led to a fall in product prices. Moreover, Currency depletion against the US dollar also caused downward pressure on the CPVC costs in the region. Meanwhile, strict covid restrictions in China crippled trading activities in Quarter 2 ending 2022. The price of CPVC showed a decline of 2% in the regional market.
Europe
Chlorinated polyvinyl chloride prices showcased upward momentum in Quarter 2 of 2022 in the European market amid fluctuations in the upstream Crude oil prices due to ongoing geopolitical tension between Russia and Ukraine. Moreover, the escalation in the conflict between Russia and Ukraine resulted in a high inflation rate in the region. Increased raw material costs led to a bullish price trend for CPVC in Europe. Additionally, the high inflation rate and soared freight prices exerted additional value on the imported commodities like CPVC in the European market in the second quarter of 2022. The prices of CPVC witnessed an inclination of 3% in June.
