For the Quarter Ending March 2025
North America
During Q1 2025, the North American Chlorinated PVC (CPVC) market saw an 18% price decline, driven by low production rates, reduced input costs, and moderate demand from the construction sector. In January, limited production and mild inventory depletion led to variable pricing. Winter storm disruptions and rising transportation costs pushed prices slightly higher early in the month, although stable demand from residential and chemical construction offered some support.
By February, CPVC prices came under pressure as feedstock Ethylene Dichloride (EDC) prices dropped 28%, significantly reducing production costs. Despite lower EDC output, ample inventories and sluggish export demand—especially to Canada and Mexico—kept market sentiment bearish. Construction and chemical sector demand declined, with builder sentiment hitting a five-month low due to high borrowing costs.
In March, CPVC production in North America remained subdued, but ample supply from backlogged inventories and stable EDC prices continued to apply downward pressure on prices. Suppliers lowered prices to boost exports, while seasonal construction and automotive activity provided modest demand support. However, new U.S. tariffs and cautious procurement dampened trading activity, shaping a bearish Q1 2025 market.
Europe
The European Chlorinated PVC (CPVC) market experienced predominantly bearish conditions during Q1 2025 due to ample supply, weak demand, and unfavourable export conditions. In January, prices rose marginally by USD 3/MT as suppliers resisted trading at historically low levels, despite low operating rates and abundant inventories. Demand remained weak, particularly in the Dutch construction sector, which continued to struggle with declining orders and employment. In February, prices declined further due to a 44.4% drop in feedstock EDC costs and persistent inventory overhang. Production remained subdued, while high berth occupancy at major ports like Amsterdam caused logistical delays. Arbitrage closures and Red Sea security issues exacerbated the supply glut. Demand continued to fall, with the Dutch construction sector experiencing broad-based declines across housing, commercial, and civil engineering activities, driven by high interest rates and weak customer sentiment. In March, EDC prices rebounded by 2%, prompting suppliers to attempt price hikes, though most buyers resisted. Despite reduced production, backlogged inventories kept supply ample. Construction activity remained sluggish, with marginal easing in the rate of decline but continued procurement cutbacks, keeping overall market sentiment bearish.
APAC
The APAC Chlorinated PVC (CPVC) market declined by approximately 3.8% in Q1 2025, driven by sluggish export demand and bearish pricing trends, particularly across China. In January, ample inventories from December and subdued export activity—due to the Lunar New Year and Ramadan—kept market sentiment weak. Despite curbed production ahead of holidays and a 5% drop in EDC prices, demand remained soft amid a construction sector slowdown, as reflected by falling housing prices and a 17% YoY drop in property sales. In February, production resumed, boosting supply amidst weak export demand and a 2% decline in EDC prices. Some signs of domestic market stabilization emerged, with China’s Construction PMI improving to 52.7. However, exports to India remained limited due to anti-dumping duties, and Southeast Asian demand was low. March saw continued abundant supply, stable logistics, and softer prices fueled by a 3.8% drop in EDC costs. While domestic construction activity modestly improved (PMI at 53.4), home prices declined, and exports remained muted. Buyers continued cautious, need-based procurement, reflecting an uncertain recovery path despite policy support.
South America
The South American Chlorinated PVC (CPVC) market witnessed a 3.5% depreciation during Q1 2025, driven by ample supply and mixed demand. In January, limited U.S. production and logistical disruptions, including Winter Storm Enzo and rising transport costs, led to variable pricing in Brazil. Despite slightly higher prices, Chinese-origin CPVC gained traction due to a 34% drop-in Trans-Pacific freight rates. Demand was moderate, with subdued construction activity and overall industry indices signaling contraction. In February, U.S. production fell further by 6.2%, while a 24% drop in EDC prices offered cost relief. Chinese cargoes resumed, and Asian freight rates declined 22%, pressuring prices further. Demand remained mixed—residential launches and business confidence grew, but rising construction costs and labor shortages kept buyers cautious. March saw continued declines in U.S. resin output and steady EDC prices, prompting U.S. suppliers to offer lower-priced cargoes to Brazil. Chinese CPVC imports intensified, bolstered by a 23% freight rate drop. Despite favorable supply conditions, demand stayed moderate. Infrastructure investments under Brazil’s PAC program buoyed market sentiment, but high interest rates, inflation, and labor shortages continued to constrain broader CPVC consumption.
For the Quarter Ending December 2024
North America
In Q4 2024, the US Chlorinated PVC (CPVC) market experienced a generally bearish trend, with prices showing a slight decline due to weak demand and ongoing destocking efforts. The US market saw a decrease in December. This decline was largely driven by a seasonal slowdown in the construction sector, which led to reduced demand from both residential and industrial construction. Despite stable production costs, due to unchanged feedstock prices (Ethylene Dichloride - EDC), suppliers focused on clearing inventories, anticipating tax consequences, and inventory devaluation at year-end.
Manufacturing dynamics were impacted by bottlenecks at US warehouses, especially in Houston, which led to inventory buildup and delayed shipments. Some US suppliers curtailed production, resulting in limited market supply, but this did little to reverse the bearish momentum. Demand was subdued, with residential housing starts and permits declining, exacerbated by higher mortgage rates and a sluggish real estate market. Despite this, a slight uptick in industrial chemical spending provided some support for CPVC consumption.
The US CPVC market remains under pressure as export conditions also face uncertainty due to port delays and the looming expiration of labor contracts, dampening overall market optimism. The overall Q4 price trend reflects a combination of weak demand, inventory buildup, and slow production adjustments.
APAC
In Q4 2024, the Chlorinated Polyvinyl Chloride (CPVC) market in the Asia-Pacific (APAC) region, particularly in China, faced a challenging yet complex landscape. Early in the quarter, prices for CPVC saw a noticeable decline, primarily due to lower production costs from the depreciation in feedstock prices, including EDC (Ethylene Dichloride) and Calcium Carbide. By October, the Chinese CPVC market experienced a significant drop, with prices falling to historically low levels of USD 1030/MT FOB Shanghai, driven largely by ongoing destocking efforts and weak export conditions. Supply dynamics were impacted by ample inventories and short lead times, as Chinese suppliers aimed to liquidate stocks amid weak domestic demand. As the quarter progressed, demand remained subdued, especially from key export markets such as Southeast Asia, Europe, and North America. While the domestic construction sector showed slight signs of recovery, particularly due to government stimulus packages, overall demand conditions remained soft. The bearish market sentiment continued as exports dropped significantly, with a 24% decrease in CPVC exports in October, exacerbated by unfavorable weather conditions and political factors like anti-dumping duties. Despite some improvements in construction activity, inventory overhang and export challenges kept prices under pressure, with little room for significant upward movement in the short term. Overall, Q4 2024 closed with a largely bearish market trend for CPVC in APAC, driven by weak demand and excess supplies.
Europe
In Q4 2024, the European Chlorinated PVC (CPVC) market, particularly in Germany, experienced a stable yet slightly bearish price trend. Prices remained relatively stable throughout the quarter, with a marginal 1% decline in December, settling at USD 1,610/MT FD Hamburg. The main drivers behind this subdued price action were weak demand conditions, particularly from the construction sector, compounded by ongoing destocking activities and extended holidays, which reduced market activity. Supply conditions remained ample throughout Q4, aided by moderate production levels and reduced run rates by producers to adjust to the weak demand. The depreciation of feedstock EDC prices exerted downward pressure on production costs, supporting the stable price trend despite some minor fluctuations. Logistical bottlenecks, particularly in the Port of Hamburg, created delays in shipments, which contributed to supply chain disruptions but did not result in significant price volatility. Demand for CPVC in the construction sector remained under pressure due to continued downturns in residential building permits and overall industry activity. Political uncertainties, especially in Germany, further dampened expectations for future market recovery. With little improvement expected until the new year, the overall market sentiment for CPVC in Europe remained weak through the end of 2024.
South America
The South American CPVC market exhibited a generally stable price trend in the fourth quarter of 2024, with minor fluctuations during this timeframe. While robust demand from the construction sector, driven by the summer season and government initiatives (like the PAC), provided support, abundant supply, particularly from Chinese suppliers, exerted downward pressure. Supply dynamics were complex. Despite initial supply bottlenecks in the US export market, increased Chinese exports to the region, driven by competitive pricing and market diversions, significantly impacted the market. Domestic supply in Brazil remained relatively stable, with some fluctuations due to production and logistical challenges. Demand from the construction sector remained robust, fueled by the summer season and improving construction confidence. However, labor shortages and economic challenges partially offset growth. Industrial demand remained relatively healthy, contributing to overall market stability. Overall, the South American CPVC market demonstrated a relatively stable price trend during Q4 2024, with minor fluctuations driven by a dynamic interplay of supply and demand factors.
For the Quarter Ending September 2024
North America
In the third quarter of 2024, the Chlorinated Polyvinyl Chloride (CPVC) market in North America experienced a notable decline in prices, influenced by several key factors. Production costs, moderate to high supply levels, and low to moderate demand conditions shaped the pricing landscape. Caution dominated operations in the US Gulf Coast and Louisiana due to the ongoing hurricane season, which resulted in moderate supplies of CPVC.
Low demand from the plumbing sector significantly impacted prices, driven by underperformance in the construction sector and a downturn in the industrial sector linked to declining manufacturing activities. In response to falling sales, firms reduced production levels, and clients became hesitant to commit to new projects, further exacerbating the overall demand decline.
The US market saw considerable price fluctuations during the quarter, affected by challenges in manufacturing, high inflation rates, and currency depreciation. Prices fell by 4% compared to the previous quarter, with no significant difference noted between the first and second halves. By the quarter's end, Chlorinated PVC (Pipe Grade K-67.4) was priced at USD 2157 per metric ton delivered in Texas, highlighting the prevailing market conditions.
Europe
In the third quarter of 2024, the Chlorinated Polyvinyl Chloride (CPVC) market in Europe faced bearish conditions, characterized by declining prices. This downward trend was primarily driven by sluggish demand from the industrial and construction sectors, resulting in oversupply and low consumption levels. Additionally, heightened production costs, particularly the rise in feedstock prices such as Ethylene Dichloride (EDC), contributed to the price depreciation. The Dutch market experienced the most significant price fluctuations, mirroring the overall trend observed across Europe. Seasonal factors, including the rainy season, further subdued construction activities, negatively impacting demand for CPVC products. The correlation in price changes reinforced a negative outlook, with a notable 15% decrease from the previous quarter, and no substantial difference observed between the first and second halves of the quarter. By the end of the quarter, the price for CPVC Pipe Grade K-67.4 FD Amsterdam in the Netherlands reached USD 1626/MT, underscoring the ongoing negative pricing environment that has defined the market during this period.
APAC
The third quarter of 2024 has posed significant challenges for the Chlorinated Polyvinyl Chloride (CPVC) market in the APAC region, characterized by notable price declines. A variety of factors have influenced market prices, including oversupply issues, low demand from both the construction and industrial sectors. Additionally, seasonal factors, particularly monsoon conditions, have further dampened demand, exacerbating the overall market situation. In China, the market experienced the most pronounced price changes, with prices decreasing by 22% compared to the previous quarter. This reflects a broader bearish trend in the region, where prices have consistently fallen due to the interplay between low demand and high supply. The correlation between price changes and market conditions has been evident, emphasizing the impact of these dynamics on the pricing landscape. By the end of the quarter, the price for CPVC Pipe Grade K-67.4 FOB Qingdao in China stood at USD 1130/MT. This figure underscores the prevailing negative pricing environment throughout the quarter, despite some stability in overall market conditions.
South America
Throughout the third quarter of 2024, the Chlorinated Polyvinyl Chloride (CPVC) market in South America faced a notable decline. Various factors impacted market prices during this period, with the Brazilian CPVC market remaining in a bearish state. While demand from the construction sector showed some positivity, the industrial sector continued to exhibit weakness, leading to a slowdown in overall consumption. Producers reduced output volumes in response to subdued sales and ongoing cost pressures. Additionally, high shipping fees prompted some clients to shift from imported to domestic goods, further weakening import prices of CPVC within the Brazilian market. Brazil experienced the most significant price fluctuations, with a 4% decline from the previous quarter. The market also recorded stable prices between the first and second halves of the quarter. Overall trends in Brazil were influenced by factors such as improved supply conditions, low demand from the downstream sector, and a depreciating Brazilian Real. By the end of the quarter, the price for CPVC Pipe Grade K-67.4 CFR Santos reached USD 2274/MT, reflecting the ongoing challenges in the market.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has stabilized in the Chlorinated Polyvinyl Chloride (CPVC) market in North America, marked by a mixed trend in prices during this quarter. The decline in CPVC prices in May 2024 has been influenced by several significant factors, primarily the reduction in feedstock costs and oversupply conditions. The depreciation in the prices of upstream Ethylene Dichloride (EDC) has notably eased production costs, contributing to lower CPVC prices. Furthermore, an oversupplied market condition, driven by excess inventories and high stockpiles of CPVC, exacerbated the price decline.
Turning to June 2024, The end of the second quarter witnessed prices of Chlorinated PVC increase by approximately 2.6% due to heightened production costs and cautious operations across the US Gulf Coast and Louisiana despite demand conditions being largely unfavorable from the downstream construction market. The increment in the prices is further attributed to lengthened delivery times and higher transportation costs which further pushed the prices of CPVC on the higher end. Higher mortgage rates are expected to further cast a negative sentiment for the transactions in the downstream construction industry keeping overall demand conditions moderate. The procurement activities from the industrial application remained positive for the time being.
The correlation between reduced feedstock prices and slow downstream demand was evidence of stability in the CPVC prices. Disruptions such as issues with maritime transportation and highway insecurity further complicated the supply chain, adding to the tightening of supplies in the US CPVC market. Concluding the quarter, the price of CPVC Pipe Grade K-67.4 in Texas stood at USD 2241/MT, reflecting an overall stable pricing environment for the period.
APAC
The second quarter of 2024 has been particularly challenging for the Chlorinated Polyvinyl Chloride (CPVC) market in the APAC region. Prices have witnessed a significant downward trend, influenced by a confluence of factors. The primary driver behind the declining prices has been the reduction in feedstock costs, particularly Ethylene Dichloride (EDC) and Vinyl Chloride Monomer (VCM), which have been observed to depreciate considerably. This has resulted in reduced production costs, enabling manufacturers to lower their prices to remain competitive. Additionally, the broader downturn in the construction sector across the region has further exacerbated the declining demand for CPVC. Seasonal weather conditions, including persistent rains, have impeded construction activities, leading to an oversupply of CPVC inventories. Focusing on China, which has experienced the most significant price reductions, the market trends have been markedly bearish. The manufacturing sector has shown signs of stagnation, with the Purchasing Managers' Index (PMI) indicating contraction. Despite some recent improvements, the overall sentiment remains negative. Seasonality has played a critical role, with rainy weather further dampening construction activities and, consequently, CPVC demand. The latest quarter-ending price for CPVC Pipe Grade K-67.4 is recorded at USD 1440/MT FOB Qingdao in China, reflecting the negative pricing environment during Q2 2024. The market has been plagued by disruptions and plant shutdowns, such as those at key EDC and CPVC production facilities, further contributing to the supply glut and downward price pressure. Overall, the pricing sentiment for CPVC in the APAC region for Q2 2024 has been decidedly negative, with no immediate signs of recovery.
Europe
In the second quarter of 2024, the European Chlorinated Polyvinyl Chloride (CPVC) market experienced significant price decreases, driven by multiple adverse factors. This period was marked by declining prices of feedstock Ethylene Dichloride, resulting in lower production costs for CPVC. Moreover, the market faced an oversupply situation due to the inflow of inexpensive imports from neighboring regions. Despite moderate demand from the downstream construction sector, the overall pricing environment remained negative as supply consistently outpaced demand. Seasonal rainy weather further exacerbated the situation, reducing construction activities and thereby impacting the demand for CPVC. In Germany, the CPVC pricing environment was particularly strained, with marked declines. The country faced a sharp contraction in the construction sector, which has been ongoing for the second consecutive month. This downturn was compounded by logistical challenges due to severe flooding, further hindering market circulation. Consequently, the German market saw the most substantial price changes within the region. The overall trend reflected a consistent downward trajectory, heavily influenced by both excess supply and weakened demand conditions. The latest quarter-ending price for CPVC Pipe Grade K-67.4 FD Hamburg in Germany stood at USD 1762/MT.
South America
The second quarter of 2024 witnessed a stable trend in Chlorinated Polyvinyl Chloride (CPVC) prices in the South American region, particularly in Brazil. The decline in May 2024 was attributed to various factors influencing the market, such as an oversupply of CPVC due to inexpensive imports from major exporting countries, including the U.S. and China. Further, disruptions in logistics and transportation, including floods and road closures, contributed to challenges in the supply chain, impacting prices during June 2024. Towards the end of this quarter, prices of Chlorinated PVC witnessed an increment in the Brazilian market due to heightened production costs in the exporting markets, namely across the US and China leading to expensive inventories of the product in the Brazilian market. Increments in the production costs attributed to the increments in the prices of EDC across the US resulted in the Brazilian market witnessing expensive inventories of Chlorinated PVC. This was further accompanied by high freight charges from China to the South American East Coast and from the US East Coast to the South American East Coast. Demand conditions from the downstream construction industry were mainly stable, as indicated by moderate sales and launches of the housing units witnessed in May 2024, despite the present off-season witnessed in the construction sector due to the prevailing winter season in Brazil. The quarter-ending price for CPVC Pipe Grade K-67.4 CFR Santos in Brazil stood at USD 2363/MT, indicating balanced demand-supply conditions and stagnant CPVC prices in Q2 of 2024.
