For the Quarter Ending December 2022
North America
US Polyvinyl Alcohol prices have declined substantially in Q4 2022. Consumer sentiment has declined in the US market in the last three months, which has been vindicated by the drop in US Manufacturing Purchasing Index (PMI) that dropped below 50 (i.e., 49.7) in November, signifying a contraction in manufacturing and industrial activity. The holiday season further contributed to the weak demand dynamics of several commodities, including Polyvinyl Alcohol. Imports have been ample on the US shores as the freight charges dropped sharply while the global demand sentiment has been sluggish, resulting in better availability for exports to the international market. While, the feedstock VAM prices remained weak, further easing the cost pressure on PVA. Thus, as of December 2022, Polyvinyl Alcohol prices have been assessed at USD 3200 per MT FOB Texas.
APAC
Polyvinyl Alcohol prices have continued their downward decline in the last quarter of 2022. Weak cost pressure from feedstock Vinyl Acetate Monomer (VAM) and declined demand dynamics from downstream packaging and construction industries resulted in waning prices of Polyvinyl Alcohol. On the other hand, demand from the international market has been stable as the Chinese market participants reported consistency in volume offtakes from the global market. Meanwhile, the Chinese ports of Ningbo and Qingdao faced the wrath of typhoon Muifa and typhoon Hinnamnor. Ports announced a reduction in port activities and shutdowns, while LNG import terminals were also closed off. Supply dynamics have strengthened after the supply chain disruptions caused by typhoons in October 2022. Demand dynamics were further worsened by growing concerns regarding the resurgence in covid cases. As of November 2022, PVA prices have been assessed at USD 2435 per MT FOB Qingdao.
Europe
Polyvinyl Alcohol prices have continued their downward slide during Q4. The continual decline in feedstock Vinyl Acetate Monomer prices, coupled with stable demand from the downstream packaging industry, culminated in weak pricing sentiment in the European market. Energy prices have remained on a consistent decline during the last quarter after upheaval in Q3. Imports from the Asian market continue to remain cheap on European shores, further easing PVA prices. Freight charges have dropped sharply on Asia to Europe route, assisting the inflow of imports on the European shores. As of November 2022, Poly Vinyl Alcohol prices were assessed at USD 3875 per MT FD Hamburg.
For the Quarter Ending September 2022
North America
Polyvinyl Alcohol prices declined throughout the third quarter of 2022 in the North American region owing to weak cost pressure and limited demand from downstream industries. Feedstock Vinyl Acetate Monomer (VAM) prices deteriorated sharply in the US market as the upstream Acetic acid prices also witnessed a substantial decline. A drop in VAM prices, along with weak demand from downstream polymers, culminated in soft pricing sentiment of Polyvinyl Alcohol. Meanwhile, the US witnessed major port congestions in several ports, including the port of Houston, which delayed the export of the material into the international market. Thus, after the conclusion of Q3, Polyvinyl Alcohol prices were assessed at USD 4854 per MT FOB Texas.
Asia Pacific
Polyvinyl Alcohol prices remained on a declining trend throughout the third quarter owing to a sluggish feedstock market and underwhelming demand from downstream polymer industries. Feedstock Vinyl Acetate Monomer prices dropped significantly in the Asia Pacific region owing to a consistent fall in the upstream Acetic acid prices. Overall, the energy market remained comparatively stable as both crude oil and Naphtha prices declined in Q3, which eased the cost of production. Meanwhile, demand from the downstream polymer industry remained stable to weak, which resulted in stagnant consumption levels. The landfall of two typhoons ravaged the port activities in Japan, South Korea, and China, which resulted in curtailed supply chain dynamics towards the end of the third quarter. Thus, after the conclusion of Q3, Polyvinyl Alcohol prices were assessed at USD 3116 per MT FOB Tokyo.
Europe
The inflow of cheaper imports from the Asian market resulted in a declining trend of Polyvinyl Alcohol in the third quarter in the European region. The threat of European recession intensified during the quarter, and the inflation rates in several key economies breached record levels. The high inflation rates and soaring energy prices culminated in weakened consumer sentiment, which limits the consumption rates, thus curtailing overall demand in the downstream industries. The polymer market as a whole observed an underwhelming quarter as the ample supply outpaced the limited demand. Thus, after Q3, Polyvinyl Alcohol prices were assessed at USD 4854 per MT FD Hamburg.
For the Quarter Ending June 2022
North America
The prices of Polyvinyl Alcohol surged consistently in the USA market during the second quarter of 2022. Major Polyvinyl Alcohol manufacturers in the United States had to revise their prices due to rising feedstock Vinyl Acetate Monomer (VAM) prices, soaring utility costs, and disrupting supply chains. Furthermore, escalated energy costs and inflationary pressure amid the Russia-Ukraine conflict severely impacted the global petrochemical market. In addition, the strong downstream enquiry from textile and medical industries further exacerbated the market value of Polyvinyl Alcohol during the entire quarter. Conclusively, the assessed value of Polyvinyl Alcohol at FOB Texas was USD 5580/MT in April, which increased to USD 5760/MT in June and marked a rise of 3.23%.
APAC
The prices of Polyvinyl Alcohol First inclined and then declined in the Asia-pacific region during quarter 2 of 2022. In China, the Polyvinyl Alcohol prices increased in April due to increased demand, surged energy prices, congested ports, and raised freight charges in the country. The Polyvinyl Alcohol value dropped in May and June due to abundant supply. As the cost of feedstock Vinyl Acetate Monomer (VAM) and upstream Acetic Acid was slumping in the domestic market, so was the market value of Polyvinyl Alcohol. Besides, the downstream demand from the textile, paper, and food packaging industry was mostly weak during the quarter.
Furthermore, in the last few weeks of June, Polyvinyl Alcohol Prices dropped even further as the covid-19 related restrictions relaxed. Thus, after a consistent reduction, the price value of Polyvinyl Alcohol got settled at USD 3765/MT FOB Qingdao in June. Likewise, the price value of Polyvinyl Alcohol first propelled and then plummeted in the Indian domestic market as China is the major exporter of Polyvinyl Alcohol to India. Hence, increasing and decreasing prices also impacted India's market value. Conclusively, the evaluated worth of Polyvinyl Alcohol at Ex-Mumbai was USD 4179/MT in June, which was USD 4277/MT in April.
Europe
Europe mirrored the North American market and showcased a similar pricing trend for Polyvinyl Alcohol during the second quarter of 2022. Supply shortages and raw material price hikes were two significant factors behind the price surge of Polyvinyl Alcohol in the European market. Meanwhile, the soared energy costs escalated logistic charges, and increased inflationary pressure amidst Russia-Ukraine war tensions further propelled the Polyvinyl Alcohol value upwards. Furthermore, the offtake from downstream paper, textile, and food packaging industry was robust, which led to a price hike in Polyvinyl Alcohol. Thus, the assessed price of Polyvinyl Alcohol at FD Hamburg was USD 6015/MT during June.
For the Quarter Ending March 2022
North America
Regardless of tepid demand from the downstream market, rising raw material cost stayed a significant reason for concern for key players of Polyvinyl Alcohol. Narrowing net revenue convinced players to raise their offers, while temporary dullness opposed them from announcing frequent cost revisions. Also, worldwide inflationary tension concerned vital participants in US market, as rising input cost dented their overall revenues. In this quarter, the cost of Polyvinyl Alcohol surged by 2% with respect to the previous quarter. Polyvinyl Alcohol prices in the USA were observed at USD 4500/MT in March. Feedstock VAM market sentiments likewise stayed tepid with crushed profit and low inventories among the ventures.
Asia Pacific
In Q1 2022, market sentiments of Polyvinyl Alcohol remained weak in the first half of the quarter due to narrowed demand and weak trading environment. However, in second half the prices surged showcasing high demand from the consumer’s end. In China, prices of Polyvinyl Alcohol towards the end of the quarter were observed at USD 3813/ton FOB Qingdao. As PVOH market experienced oversupplies, its prices dropped, and profit got crushed strongly with more than reasonable range. However, the demand in the overseas market was observed to be healthy which led to the improvement in its offtakes by the end of the first quarter in India. In India, prices of Polyvinyl Alcohol were assessed at USD 4441/ton Ex-Mumbai in March 2022.
Europe
European market has been witnessing Russia-Ukraine conflict with exorbitant climb in energy cost which shook the market elements of the region. Due to the rigid shortage of raw material Vinyl Acetate Monomer amid consistent bounce back in economic exercises, costs of a several commodities soared in a small range of time. In the meantime, key global players like Kuraray Europe increased their product cost by huge figures because of exponential rise in the input cost. In Germany, the cost of Polyvinyl alcohol surged by 6% in this quarter compared to last quarter and was assessed in the range between USD 5000-5250/MT. Logistics constraints and surging transportation cost further boost the prices in the domestic market of Germany.
For the Quarter Ending December 2021
North America
Contrasted with the past quarter, the costs of Polyvinyl Alcohol in North America saw to be on the on higher side in Q4 2021. Supply of Feedstock acidic acid and Vinyl Acetate Monomer was tight for major part of the quarter as VAM remained for the most part in upswing all through the quarter. Slight steadiness in the costs of Polyvinyl Alcohol was spotted toward second half of the December. When compared monthly, the demand in October was seen to be on high side compared with rest two months. In October, the costs increased because of supply deficiency which keep up with the interest vigorous however in rest of the two months the major Polyvinyl Alcohol players had given the adequate stock and the costs fell comparatively. Downstream water treatment chemical and dye industry additionally battled with drastic price increment and lack of PVA impacted their production.
Asia Pacific
In Q4, the prices of Polyvinyl Alcohol skyrocketed to new heights with increase in demand mainly in China and shortage of raw material. The significant increase in the cost of key raw materials and utilities resulting from a rise in crude oil prices have affected the rates marginally. Furthermore, the domestic traders continue to experience pressure from soaring logistics and manufacturing costs associated with increased costs for facility maintenance and renewal. The FOB Qingdao prices for PVOH was raised by the USD 15 per tonne on w-o-w basis and the domestic price was assessed at USD 4060 per tonne in the last week of December. In India, the prices in the last week of quarter were 396/ton Ex-Mumbai. However, in the last week demand has remained stable in the domestic market. Restricted imports have compelled traders to implement consistent positive revisions. Besides, they have also been safeguarding their revenues, by transferring the freight cost pressure to the consumers.
Europe
In Q4, the costs of Polyvinyl Alcohol raced to the new statures with increased feedstock VAM and acidic acid costs. In October, the price of Polyvinyl Alcohol in Germany were surged to $4975/ton FD Hamburg. A critical reduction of long stretch shipments Europe to Asian market, more fragile cracker activities in the final quarter from low margin and logistics constrains additionally represented the tight equilibrium. There was a spike in PVOH estimating following the energy curtailment as many plants were closed down due to the government intervention. Maximum usage of energy in the manufacturing of Acetic Acid has likewise affected the significant expenses.
For the Quarter Ending September 2021
North America
The market outlook of Polyvinyl Alcohol experienced an upward trend in the North American region during Q3 2021 backed by the firm demand from the downstream construction and packaging sectors. Increased prices, low availability, and high shipping charges of upstream feedstock such as VAM led to a steep surge in the prices of PVOH across the region. Sharp rise in the prices of ocean freight, and rising utility cost, prompted a leading Japanese manufacturer to announce upward revision (~ $500/mt) in the price of PVA for all its July-September shipments destined to North America.
Asia
During the third quarter of 2021, the prices of PVOH rose effectively in the regional market of the Asia Pacific region. In India, taking support from the hiked raw material prices, the prices of Poly Vinyl Alcohol (PVA) shot up effectively across the country. Ex-works pricing of PVOH escalated from USD 2846/MT to USD 3172/MT from July to September. Continuous inflation in feedstocks led the prices of several downstream derivatives to ramp up significantly. Leading producers revealed that, due to the steep rise in raw material VAM (Vinyl Acetate Monomer) prices, their margins thinned in Q3.
Europe
The European PVOH market witnessed an upward trajectory in the pricing trend. PVOH pricing remained on an uptick across the region in Q3 of 2021 due to strong demand from the downstream manufacturers. In addition, tight supply of PVOH due to disrupted supply chains and soaring freight costs resulted in increased prices of Polyvinyl Alcohol across Europe. PVOH prices followed an uptrend and shot up from USD 4655/MT to USD 4915/MT FD Hamburg in Q3 2021.
For the Quarter Ending June 2021
North America
Polyvinyl Alcohol (PVOH) demand maintained buoyancy across North America region throughout the quarter. Improved construction activities and packaging sector raised the demand for Polyvinyl Alcohol during this timeframe, while the supply activities remained limited initially. During the month of April, price of PVOH rose effectively due to scarcity of feedstock Vinyl Acetate monomer (VAM) and disturbed transportation activities, which later resumed, and prices ease again to reach normalcy. Therefore, the price of the product fluctuated a little and finally settled at USD 1355/MT during the month of June 2021. A leading global PVOH producer, Sekisui announced increment in price of its PVOH by USD 360/MT for Low viscosity and USD 450/MT for medium and High Viscosity for North America region effective from Q3 2021.
Asia
Polyvinyl Alcohol (PVOH) market remained firm throughout the quarter across the APAC region, bolstered by stable to high demand amid rising feedstock prices. Prices rose across Japan and South Korea during this quarter, which turned buyer’s interest toward cheaper cargoes from China. However, in China, prices were rising too, due to high demand and global rise in the feedstock VAM prices. While in India, Polyvinyl Alcohol prices increased due to low availability and expensive imports, although the demand was dented by the resurgence of pandemic in the country. Thus, after gaining tremendous momentum, price of PVOH settled at USD 2634/MT and USD 3056/MT for China and India respectively during the last week of the quarter.
Europe
The European countries also had to battle with global scarcity and soaring prices of PVOH during Q2 2021. While the demand remained sturdy and strong, the prices also increased effectively across the region. Sekisu, increased its Polyvinyl Alcohol prices for the global market, while highest the rise came into effect across EMEA, i.e., USD 423/MT for low viscosity and USD 530/MT for medium and high viscosity, effective from July 2021. The market reported persistent tightness in supplies due to halted supply chain activity and soaring freight cost.
For the Quarter Ending March 2021
North America
Freezing cold weather snapped the output of most of the chemicals from USA, during Q1 2021. Due to this crisis, the global market faced extreme shortage of major raw materials, including VAM (vinyl acetate monomer), which is a major building block of PVA. Several feedstock manufacturing units across Texas faced force majeure due to unfavourable weather conditions, like Calanese VAM manufacturing unit in Texas. Despite of high shortage across the region, traders prevented themselves from opting for raw materials coming from Middle East and Asia due to their high prices. This ended up forcing several manufacturers raise their PVOH offers by multi-year highs in the quarter.
Asia
The Asian market received a sharp rise in PVA prices due to rise in price of key raw materials amid global shortage. After Chinese Lunar year holidays, inventories were running low, but the demand remained consistently firm, which led the prices to rise effectively across the region. In addition, soaring freight cost and container shortage also pushed the prices of feedstock chemicals to rise, led to rise in PVOH prices. Increment of USD 228/MT was observed in the Chinese market from January to March ending, which settled at USD 2040/MT during March.
Europe
Similar to the global scenario Europe also faced shortage of major feedstock chemicals amidst stable demand from the downstream sectors. Several manufacturers raised prices to sustain their margin, as the prices of raw materials were rising consistently. Wacker polymers raised their PVOH solution prices by up to USD 120.6/MT in effect of the similar concerns, meanwhile the prices of PVOH in Europe were hovering around USD 1280/MT during February.
For the Quarter Ending December 2020
Asia-Pacific (APAC)
Polyvinyl alcohol (PVA) supply remained short due to power outages and production cuts at the upstream vinyl acetate monomer (VAM) plants. Major producers of the feedstock such as Dairen Chemicals Corporation, Celanese, and Sinopec Sichuan Vinylon reduced their production capacities due to shortage in the upstream natural gas during peak winter season in the North-Eastern region followed by congestion reported at Panama Canal towards the end of the quarter. The minimal access to ocean freight meant limited raw material availability affected by the crude oil production cuts by the OPEC. Demand for PVA remained healthy throughout the region because of buoyant demand from the packaging films sector, display films and other specialty formulations. Pushed by demand and an upsurge in the raw material, PVA price in the Asia Pacific registered a hike of an average of USD 200 per MT in December.
Europe
Europe’s sustaining activity in the construction and the packaging films sector propelled the regional demand for PVA in Q4. The product supply was heard affected by the production outages at some upstream units throughout the region and container shortages prompting high priced imports. The European Union initiated the anti-dumping conquest over low priced imports of Chinese Polyvinyl Alcohol at the start of the quarter. The regional traders reported low inventory levels and spiked crude oil prices as the key reasons pushing up the price curve. Extending sharp feedstock rates to its customer, a leading European producer announced increment in the prices of Polyvinyl Alcohol by an average of USD 160 per MT in December.
