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.
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.
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.
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.
