For the Quarter Ending March 2023
North America
The price of PVC in the USA showed a southward trend in the quarter ending March 2023, with a quarterly drop of 3.3%, owing to the abundant inventories and slowed-down inquiries in the downstream construction and other competitive sectors. Moreover, PVC offers in the US market was weighed by the rising interest rates and bearish consumer buying sentiments. The PVC enterprises also felt competitive cost pressure in the domestic market of the USA, impacting the final discussions of the commodity this quarter. In addition, the volatility in the upstream crude oil prices put input cost pressure on the vinyl monomer value chain at the termination of the Q1 of 2023. Thus, the price of PVC for Suspension grade was assessed at USD 945/MT FOB Texas (USA) in March 2023.
APAC
In Asia, PVC prices showed a southward trend with the slump downstream momentum in the quarter ending March 2023, as ample availability of stocks and competitive offers pressured commodity prices downward. The PVC inquiries were weak in the domestic and international markets, and the enterprises felt uncertainties in the APAC market. However, market sentiments varied at the termination of March 2023 as some market players cited low-cost products from Asia combined with competitive freight rates. Moreover, PVC overseas offers from the other Southeast Asian market amidst dampening demand continued weak purchasing sentiments in March 2023. India's import K67 fell by approximately 4% this month, while China and Southeast Asia K67 prices saw a loss of around 1% and 3%, respectively, compared to February 2023.
Europe
The German PVC market witnessed a prolonged fall in the quarter ending March 2023, with recent drops in the price trend at the termination of March 2023. The prices tumbled in Germany due to weak demand from the downstream construction sector amidst the falling housing market of the region. The surge in interest rates and the cost-of-living crisis caused financial stress to the consumers of PVC. Meanwhile, the imports from Turkey and other European countries have not seen any improvement in the PVC discussions for April as well, amidst abundant supplies, weak demand, and falling prices in Asian outlets. High inflation coupled with slow economic growth kept trading activity tied to basic needs only in Europe.
For the Quarter Ending December 2022
North America
The PVC (Poly Vinyl Chloride) prices showed a plunging trajectory throughout the Quarter ending December 2022, owing to the silent downstream offers from the construction sector amid a slump in the real estate market of the USA and steady overseas inquiries of the product. Higher mortgage rates weighed on the buying sentiments amongst the buyers and led to curtained production activities in the region. With low demand and ample stocks, Formosa Plastics went for maintenance shutdown in Baton Rouge (USA) in December and November for ten days in this Quarter. The potential Recession and low consumer confidence affected the PVC market considerably in the last Quarter of 2022. The price of PVC for suspension grade was quoted at USD 1265/MT FOB Louisiana (USA) in December 2022.
APAC
The PVC prices were low in the Q4 of 2022 in the APAC region due to market uncertainties and muted consumer demand from the downstream construction sector. The PVC price dropped in the South Korean market amid slumped domestic downstream construction offers and dampened overseas inquiries. Meanwhile, the inflow of cheaper imports in the region and ease in the feedstock Ethylene costs affected the pricing dynamics of the product. In addition, low demand and ample stocks have led to maintenance shutdowns in Hanwa Chemical and LG Chem of South Korea in November and December in this Quarter. The price of PVC for suspension GP was quoted at USD 781/MT in December 2022.
Europe
The PVC price showed an overall downward trend in the Q4 of 2022, backed by the ample availability of stocks and weak demand fundamentals in the region. Meanwhile, volatility in the upstream crude oil prices amidst the European energy crisis also caused input pressure on the PVC-producing industries in this Quarter. In addition, the rising Recession in the region and bearish market sentiments for PVC in the regional market compelled the manufacturers to limit the profit margins in the region and destock piled-up inventories at lower prices in the market in the Quarter ending December 2022. Stability in the feedstock Ethylene and VCM prices also affected the price movement of the commodity. The price of PVC for Suspension calendering grade K57 was assessed at USD 1903/MT FD Vreden (Germany).
For the Quarter Ending September 2022
North America
Poly Vinyl Chloride (PVC) prices demonstrated a plunging trajectory in the third Quarter of 2022. The weak demand from the downstream construction and packaging segment was considered a factor for the downward price movement of the commodity in this Quarter. The sluggish downstream construction demand for the product amid diminished house-building activities in the region impacted the prices of the commodity. Moreover, the PVC prices dropped amidst surplus availability of inventories and high upstream energy costs with the upcoming winter season in the Quarter ending 2022. In addition, the tensions on the west coast port have also contributed to the declining trend of PVC in the North American region.
APAC
Poly Vinyl Chloride (PVC) prices tumbled in the APAC region in the Q3 of 2022. PVC prices fell in China this Quarter with sluggish downstream demand amidst COVID-19 Lockdown restrictions in the country. Consumer confidence was insufficient for the product in the local market. Since Q2, weakened market activities have affected APAC region freight charges and overall material costs. In addition, September Typhoons in several Asian countries resulted in a bearish market situation for the products like PVC as the buyers indulged in buying only on a need basis in this period. Thus, the price of Poly Vinyl Chloride deteriorated by nearly an average of 9% during the Quarter ending September 2022.
Europe
The overall market outlook of Poly Vinyl Chloride (PVC) showed a downward trajectory in the European region during Q3 2022, backed by the slumped domestic offers from the downstream construction sector in the region. Since the Russia-Ukraine War, upstream energy costs have remained high as the Russian energy, and oil supply bottleneck remained a critical issue. The region's high inflation rate diminished the buying interest amongst the PVC buyers. The market players struggled with piled-up stocks and made the product sales at reduced profit margins in the Quarter ending September 2022. Thus, the prices of Poly Vinyl Chloride showed a decline of an average of 3% in this Quarter.
For the Quarter Ending June 2022
North America
Poly Vinyl Chloride (PVC) prices showed an upward trend throughout Q2 of 2022. Strong values of upstream Chlorine and robust downstream demand for PVC in construction led to a continuous surge in its prices since April. USA experienced a rise in feedstock Chlorine prices in April due to the implementation of force majeure at a giant producer of Chlor Alkali, Olin, in the US system in Q2 2022. However, in June, prices eventually dropped with surplus availability of inventories and weak demand from the downstream construction segment. Moreover, the high inflation rate due to War and surge in input costs for Poly Vinyl Chloride were impacted as the USA's supplies declined to the anticipated levels in Quarter 2. The Price was assessed at USD 1784/MT for PVC suspension grade with FOB on a Louisiana basis in June 2022.
APAC
Poly Vinyl Chloride (PVC) prices showed a downward trend during the Q2 of 2022 in China. PVC prices fell in China in April and June due to the diminished downstream demand amid Lockdown restrictions in the country. Production of raw material Calcium Carbide was curtailed, impacting the Price of PVC due to the surge in cases of COVID 19 and resulting in the implementation of a zero covid policy in China throughout Q2 of 2022. So, strict quarantine protocols at major container terminals have continued to affect the freight charges and overall material costs since Q1. Moreover, Chinese currency depreciation against the US dollar also caused downward pressure on product prices. The Price of Poly Vinyl Chloride was quoted at USD 1283/MT for pipe grade CFR Shanghai (China) in June.
Europe
The overall market outlook of Poly Vinyl Chloride (PVC) showed an upward trajectory in the European region in Q2 2022. PVC pricing chart showcased an increasing trajectory in the market throughout this quarter, backed by the critical shortage of raw materials, Chlorine and Ethylene, which led to a surge in the European PVC prices. Since the ongoing Russia-Ukraine War, shipment costs remained high as supplies bottleneck remained a critical issue and the region's high inflation rate. In Addition, a hike in energy prices amid War also conclusively caused upward pressure on the input costs for the product. The Price of Poly Vinyl Chloride Suspension calendaring grade K57 FD was assessed at USD 2279/MT at Vreden at the end of June.
For Quarter Ending March 2022
North America
Poly Vinyl Chloride (PVC) prices showcased a surge throughout Q1 of 2022. However, in early January prices eventually dropped in line with gradual normalcy in production activities. Weak values of upstream Chlorine and seasonal dullness in PVC local as well as export inquiries led to a continuous drift in its prices since mid-December. USA experienced surge in feedstock Chlorine prices in the start of February amidst fears of the restricted supply due to the maintenance turnaround at giant producer of Chlor Alkali in US in Q1 2022. The availability of feedstock Chlorine at a global level has suddenly narrowed as the supply from USA showed fall below the anticipated levels in the final week of January. Price was assessed at USD 1663/MT for PVC suspension grade on FOB basis in Louisiana in March 2022.
Asia Pacific
PVC prices showed an upward trend during the Q1 of 2022. PVC prices in China maintained an uptrend since January owing to limited availability of the key feedstock Calcium Carbide. Production of Calcium Carbide was curtailed due to the resurgence of Covid 19 as it resulted in implementation of zero covid policy in China throughout Q1 of 2022. Strict quarantine protocols at major container terminals such as Ningbo continued to affect the freight charges and overall material costs in mid-March. As the supplies were disrupted in domestic market of China, high demand from downstream industries like agriculture, medical instrumentation and healthcare and packaging segments led to a surge in prices of PVC for the Q1 of 2022. Prices of PVC Suspension Flexible GradeK67 (Spot) were assessed at USD 1498/MT Ex-Nanjing in the March 2022.
Europe
The overall market outlook of PVC showcased an upward trend in the European region in Q1 2022. PVC pricing chart showcased an upward trajectory in the market throughout the quarter backed by the critical shortage of raw materials which led to an increment in the regional prices. Since the ongoing Russia-Ukraine war, shipment cost remained high as port congestion remained the key issue. In addition, logistic issues like container shortages and soaring freight costs exerted additional value on all the imported commodities in Europe in this quarter. The price of European Poly Vinyl Chloride Suspension for calendaring grade K57 FD was assessed as USD 2108/MT at Vreden in March end.
The overall market outlook of PVC demonstrated an upward trend in the European region in Q3 2021. The PVC pricing chart showcased an upward trajectory in the market during September backed by the critical shortage of raw materials which led to increment in the regional prices. Shipment cost remained firm as port congestion remained a key issue. In addition, logistic issues like container shortages and soaring freight costs exerted additional value on all the imported commodities in Europe in this quarter as well.
For the Quarter Ending December 2021
North America
As the market dynamics of Chlor-Alkali and Poly Vinyl Chloride (PVC) are intertwined, limited production of Caustic Soda as operating rates remained low as a repercussion of Ida hurricane since mid Q2 2021 continued to stress the supply in the quarter ending December as well. As several plants in US halted their production, supply of feedstock Chlorine remained restricted which eventually bottlenecked the production of PVC. The reduced availability amid high export demand for PVC led to led to the rise in its contract prices till November. However, after reaching tremendous high in November, prices eventually dropped due to the offseason dullness in the demand pattern. In December, supply outstripped the demand, making PVC prices plummet throughout the month. PVC tumbled to USD 1680 per MT FOB Texas for Suspension Grade in the final week of December.
Asia
Market sentiments of Poly Vinyl Chloride (PVC) initially gained in October then registered a steep drop by the end of December. PVC prices witnessed consistent surge in October amidst favourable demand from packaging and construction segments in the peak festive season. Strong demand for PVC gradually declined from early-November, leading to higher inventory levels. In China, inventory levels surged to nearly 133% with respect to the previous year. Dept crisis in the construction sector and off-season dullness in demand in December caused consistent decline in PVC prices. Flat trading activities and bearish values of feedstock Ethylene and Chlorine also influenced PVC prices in December. With supply outstripping the demand, Pipe Grade PVC prices in China touched rock bottom settling at USD 1345 FOB Shanghai while in Calendering Grade settled at USD 1740 per MT in December.
Europe
Europe experienced extreme shortage of Vinyl Chloride Monomer (VCM) which compelled a major PVC producer, Vynova to run both PVC units at Belgium at less than 50% capacity. In addition, the force majeure by Vinnolit at its Caustic Soda plant also tumbled the availability of its feedstock Chlorine in the first half of the quarter. Although the availability of feedstock started levelling by late-November, PVC prices continued to witness consistent climb due to reduced production and high energy prices. PVC prices for Suspension Grade in Europe reached USD 2050 per MT FD Germany in December.
For the Quarter Ending September 2021
North America
The production of PVC in the US had witnessed a slump since late August as Hurricane Ida made landfall on 29th August, forcing shutdown of major PVC manufacturing plants from Baton Rouge to New Orleans along the Mississippi river that accounts for nearly half of US PVC production. During the third quarter, Shintech had to shut down its 1.45 Mn MT/Year plant in Freeport, Texas as its VCM source Olin Chemicals shut its VCM plant on the 30th August due to technical failure. Prices of PVC started surging since the first week of September and reached an all-time high at 1960 USD/Mt FOB Louisiana and 1940 USD/Mt FOB Texas during September. However, the last week of September observed moderation in prices as production picked up owing to plant restarts in Texas and Louisiana.
Asia
The prices of Poly Vinyl Chloride (PVC) rose effectively in the Asia Pacific region during the third quarter of 2021. The pricing trend continued to experience an upward trajectory amidst an active polymer market against the global supply shortage. Although manufacturers in Asia were heard operating their plants at full capacities during the quarter, insufficient production and supply from western countries put upward pressure on PVC’s market fundamentals across the region. Manufacturers were seen enhancing their export potential to widen their profit margins by serving a large share of global demand in times of scarce supply. In India, the pricing of PVC observed a major hike as the CFR ICD Delhi prices escalated from USD 1429/MT to USD 1680/MT in Q3 2021.
Europe
The overall market outlook of PVC demonstrated an upward trend in the European region in Q3 2021. The PVC pricing chart showcased an upward trajectory in the market during September backed by the critical shortage of raw materials which led to increment in the regional prices. Shipment cost remained firm as port congestion remained a key issue. In addition, logistic issues like container shortages and soaring freight costs exerted additional value on all the imported commodities in Europe in this quarter as well.
For the Quarter Ending June 2021
North America
After registering record growth till the end of April, prices of Poly Vinyl Chloride (PVC) started normalising in May following the improved supply activities in USA. North American market revival, from pandemic after successful vaccination drive, pushed up the demand for PVC from domestic construction sector. Meanwhile, major plants like Oxychem and Westlake Chemicals lifted their force majeure from PVC suspension grade in June, which also improved the supply of PVC across the region and helped the prices to gradually decline.
Asia
Asian market showcased firm demand for Poly Vinyl Chloride (PVC) from downstream construction sector in April, which later declined in month of May. Manufacturers based in China were readily exporting PVC to the Indian market during April on fairly high prices. The steep rise in pandemic cases in India, reduced the demand for PVC from the respective construction segment, while the availability was abundant enough to satisfy the overall need of the country. Therefore, prices of PVC declined in later half of the quarter in the Indian market, and finally hovered around USD 1617/MT during the last week of June.
Europe
Europe experienced huge spike in price of PVC in the country, backed by sturdy demand pattern and critical feedstock and material shortage. Due to lower imports from USA, prices of feedstock Ethylene as well as its derivative products including, EDC, VCM and PVC were heard witnessing week on week surge during this quarter. In addition, logistical issue like container shortages and soaring freight cost also exerted additional value on all the imported commodities in Europe during this period.
For the Quarter Ending March 2021
North America
PVC production across North America region was disrupted by a rare freezing storm across the gulf, which forced the total PVC output to reach its lowest limit during Q1 2021. Due to the disruption caused by the winter storm, availability of Feedstock materials including monomer Vinyl Chloride was reduced, and high demand from domestic as well as international market supported the prices to seek uptrend. Hence the average PVC prices rose by 16.83% across the region and settled at USD 1717.5 per MT during March. Apart from all these disruptions, Shintech announced the investment of USD 1.3 billion on the expansion of its PVC plant in Plaquemine, Louisiana. This huge investment is expected to boost the overall production capacity by 838 Million lb per year.
Asia
In Asia, prices of PVC followed rapid uptrend throughout the quarter, due to high demand from domestic market but insufficient availability of cargoes. Hike in shipping container prices and uplifted freight cost across southeast Asia further supported this price uptrend in the quarter. Besides, winter storm across the US Gulf region disrupted the global supply and disturbed the trade activity in Asia. In addition, bullish demand for PVC from Chinese market supported the price in other APAC countries, like India. In Indian market, calendaring K60 grade PVC CFR price rose by 30.36% and settled down at USD 1615.97 per MT in March.
Europe
Overall exports of PVC from Europe increased during Q1 2021, due to the reduced production across US Gulf coast. Rising freight cost and shortage of shipping containers supported the prices PVC, and hence these climbed to around USD 113 per MT in some CIS countries. Although the domestic production of PVC remained tight across the region due to some planned and unplanned plants turnarounds.
For the Quarter Ending June 2020
Asia
Asian PVC market outlook remained strong as several manufacturers were seen dumping cargoes earlier this year resulting in lower inventory levels of the product. The supply deficit aggravated further with a major producer in Northeast Asia implementing a maintenance turnaround. As many countries managed to tackle the spread of contagion, market activities slowly increased by the end of the quarter with continuous ease in restriction measures across the region. Traders witnessed increased purchasing as buyers were optimistic over further demand revival with resumption in production for majority of the downstream industries. With several scheduled plant outages in the next quarter, the demand and supply gap are anticipated to widen in the later part of the year.
Middle East
As major exporting countries in South Asia and U.S. struggled to pull off their trade activities due to force majeures like production cuts and turnarounds to contain the spread of virus, supply of PVC tightened in the quarter ending June 2020. Although domestic manufacturers operated their plants at maximum capacity but were unable to sufficiently cater the overall demand. Despite damped infrastructure activities in the regions, buyers were keen to buy large spot volumes of pipe grade PVC on high hopes of resumption of construction activities by the coming quarter and to replenish the slumped inventories due to pandemic blows.
