For the Quarter Ending March 2023
North America
The price of VCM in the USA demonstrated a declining trend in the quarter ending March 2023 due to falling demand from the downstream PVC manufacturing segment throughout the Q1 of 2023. The abundant inventories and weak demand in the downstream construction industry and other competitive industries affected the prices of VCM during this period. Rising interest rates and gloomy client purchasing attitudes hindered VCM offers in the US market. While PVC prices were falling, the VCM businesses also faced competitive cost pressure on the local US market, and at the same time, affected the commodity's final negotiations this quarter. Additionally, due to the volatility in upstream crude oil prices, the vinyl monomer value chain saw input cost pressure at the end of the first quarter of 2023.
APAC
In the quarter ending March 2023, VCM prices in Asia showed an upbeat trend with a pickup in downstream momentum while competitive offers and a shortage of inventories pushed commodities prices higher. Due to volatile crude oil prices in the APAC market, the VCM market is influenced by the high costs pressure, elevating prices this quarter. At the end of March 2023, consumer sentiments varied because of negotiable freight charges amidst a bearish market situation across the globe. Therefore, a surge in demand from the construction sector as a result of expectations of higher housing segment consumption in the Asian market was the key factor for VCM discussions this quarter.
Europe
In addition to a recent reduction in the price trend at the end of March 2023, the German VCM market had a persistently bearish price trend in the quarter ending in March 2023. VCM prices in Germany were down as a result of weak demand from the construction sector and a decline in downstream PVC business activities. The expense of living crisis and the increase in interest rates influenced the commodities market this quarter amidst financial stress amongst consumers in the European region. Moreover, the VCM discussions for April were affected by the cheap imports from Turkey and other European countries due to anticipated weak demand in the downstream PVC-producing industry and piled-up inventories. Meanwhile, due to high inflation and insufficient economic growth, players in the European market were limited to trading only for the fulfillment of necessities during the Q1 of 2023.
For the Quarter Ending December 2022
North America
The VCM (Vinyl Chloride Monomer) prices showed a downward trend throughout the Quarter ending December 2022, owing to the sluggish downstream offers from the PVC-producing industries amid a decline in the real estate market of the USA and steady overseas inquiry of the commodity. Higher mortgage rates weighed on the downstream PVC offers and led to curtained downstream production activities in the region. Low demand and ample stocks led to a maintenance shutdown in Formosa Plastics in Baton Rouge (USA) in December and November for ten days in this Quarter. The potential recession and low downstream consumer confidence affected the VCM market substantially in the fourth Quarter of 2022.
APAC
The VCM (Vinyl Chloride Monomer) prices showed a plunging trend in the Q4 of 2022 in the APAC region due to ample inventories and muted consumer demand from the downstream PVC manufacturing segment. The VCM price dropped in the Asian market amid bearish domestic downstream PVC offers and dampened export offers. Moreover, the cheaper imports in the region and ease in the feedstock Chlorine costs affected the price momentum of VCM. Meanwhile, low down demand and surplus stocks have led to maintenance shutdowns in Hanwa Chemical and LG Chem of South Korea in November and December, diminishing the downstream PVC offers for the commodity in this Quarter.
Europe
The European VCM prices showed a downward trend in the Quarter ending December 2022, owing to the weak demand from the downstream PVC production industry. The rising inflationary pressures impacted the end-user PVC consumption for the commodity negatively and lowered buying sentiments in the regional market throughout the fourth Quarter of 2022. Meanwhile, downstream offers for VCM in the PVC manufacturing industry remained constrained due to labor shortages and slowed economic conditions in the European region. The escalating cost of living across the region squeezed the market activities in the real estate sector, impacting the PVC demand for the product. Moreover, the eased feedstock Chlorine prices affected the cost of the product.
For the Quarter Ending September 2022
North America
Vinyl Chloride Monomer (VCM) prices demonstrated a tumbling trend in the third Quarter of 2022. The weak demand from the downstream PVC manufacturing and high energy prices were considered factors for the downward price movement of the commodity in this Quarter. The sluggish housing rate in the region affected the downstream PVC of domestic offers for the product. Moreover, the downstream PVC offers dropped amidst surplus availability of inventories and weak upstream feedstock Ethylene support with the upcoming winter season in the Quarter ending September 2022. In addition, the tensions on the west coast port have also contributed to the declining commodity trend in the North American region.
APAC
Due to lower downstream consumer confidence in the PVC manufacturing industry, Vinyl Chloride Monomer (VCM) prices dropped in Q3 2022. Adequate inventory availability and crippled overseas demand fundamentals have resulted in the cut in production of downstream PVC in this Quarter. High inflation pressured the downstream enterprises to make sales at lower margins in the local market. Additionally, the rise in market uncertainties and port congestion due to wages dispute has led to a dip in the buying sentiments in the region during the third Quarter. Prices of VCM settled at a downward trajectory in the third Quarter of 2022, with a commodity price ease of 11% in September in the Indian market.
Europe
Europe witnessed stability in the prices of Vinyl Chloride monomers (VCM) due to weak demand from the downstream PVC industry. Persistently, the elevation in the inflation rate caused upward pressure on the downstream market players in the European region. In addition, labor strikes and a rise in production costs amidst the energy crunch weighed on the consumption of the commodity. Shortage of upstream energy in the region due to hampered Russian supplies also conclusively impacted the product's price. The rising inflationary input cost pressure and weak domestic market sentiments led to a steady price momentum of VCM in the regional market.
For the Quarter Ending June 2022
North America
Vinyl Chloride Monomer (VCM) prices remained firm during Q2-2022 across the North American region, owing to the firm offtakes from downstream PVC manufacturers. With the critical shortage of feedstock Ethylene in the USA, prices of downstream derivatives, such as Ethylene Dichloride, rose effectively in Q2, ultimately leading to a rise in VCM prices in June. Moreover, the increase in demand from the primary downstream PVC sector and the high inflation rate led to a surge in the price movement of VCM. The costs of VCM showed significant inclination in the US market due to increased energy values amid inflation in June.
APAC
Due to high feedstock Ethylene costs, Vinyl Chloride Monomer (VCM) prices surged in Q2, 2022. Inadequate inventory availability and crippled overseas raw material supply resulted in escalated production cost of Vinyl Chloride Monomer in this Quarter. High inflation pressured the downstream enterprises to fulfill the desired market requirement by passing the cost burden to consumers. Additionally, bullish energy values due to ongoing heat waves in the region influenced the prices of Vinyl Chloride monomers. Moreover, several planned maintenance shutdowns in Gujarat chemical plants also caused a rise in the prices of VCM in Asia. Prices of VCM settled at an upward trajectory in the Second Quarter of 2022.
Europe
Europe witnessed a rise in prices of Vinyl Chloride Monomer (VCM) due to firm demand from the downstream PVC industry. During this Quarter, elevation in the inflation rate caused upward pressure on the downstream enterprises in the European region. In addition, logistic issues and a rise in production costs also escalated the prices of VCM. Moreover, lower imports from the USA also remained a significant concern for the traders in Europe. Effective shortage of upstream crude oil in the region due to War also conclusively impacted the product's prices. Additionally, the conflict between Russia and Ukraine elevated the energy values in the region. Costs of VCM saw a rising trajectory in the European countries amid high inflation in the Second Quarter of 2022.
For the Quarter Ending March 2022
North America
Vinyl Chloride Monomer (VCM) prices remained firm during Q1-2022 across the North American region, backed by firm offtakes from downstream PVC manufacturers. Amid a critical shortage of upstream Ethylene in the USA, prices of downstream derivatives, including Ethylene Dichloride, rose effectively in Q1, which ultimately led to a rise in VCM prices. Besides, increased demand for VCM from its primary downstream PVC sector led to a surge in the prices of VCM. The offtakes effectively improved month over month during this quarter, contributing to the rise in prices. The prices of VCM were assessed at USD 1311/ MT during the final week of the first quarter in the USA.
Asia Pacific
Vinyl Chloride Monomer (VCM) prices surged in Q1-2022 due to high feedstock Ethylene costs. Insufficient supply of raw material resulted in increased production cost of Vinyl Chloride Monomer and created pressure on the downstream enterprises to fulfill the desired market requirement. Additionally, bullish energy costs influenced the prices of Vinyl Chloride in Asian region. Crude oil prices soared throughout the quarter, refineries using Naphtha as cracker feed remained under pressure from exorbitant feedstock prices of Ethylene. Moreover, several planned shutdowns in feedstock Ethylene chemical plants also consequently resulted in rise in prices of VCM in regional market of Asia. Prices of VCM were averaged at USD 1471 in China in the first quarter of 2022.
Europe
Europe also experienced a rise in prices of Vinyl Chloride Monomer (VCM) as a result of firm demand from downstream PVC manufacturers. During this quarter, prices of all the downstream derivatives of Ethylene rose due to persistent shortage. In addition, logistic issues and a rise in production cost also escalated the upward price trajectory of VCM along with its downstream PVC across the region during this timeframe. Moreover, lower imports from the USA also remained as a significant concern. It also induced an effective shortage of upstream in the region. Additionally, energy prices also escalated amid the ongoing Russia-Ukraine conflict. Prices of VCM were assessed at USD 1383 FOB Hamburg in Germany in the month of March.
For the Quarter Ending December 2021
North America
In North America, Vinyl Chloride Monomer (VCM) prices remained mixed witnessing surge in October-November while turning bearish by the end of the quarter. In October, Formosa Plastics USA uplifted force majeure which positively impacted the consumption of the product in the regional market. VCM prices fell in December due to its reduced consumption in PVC units owing to the seasonal dullness in demand and power disruption in some of the plants as a repercussion of a major tornado in early December. Westlake Chemicals, a major manufacturer of VCM and PVC lost power which hampered its production activities till mid-December. VCM values finally settled at USD 1348 per MT FOB Louisiana.
Asia
After witnessing astonishing rise in October, Vinyl Chloride Monomer (VCM) prices showcased a drastic fall in November-December period. Discussion of Vinyl Chloride Monomer (VCM) turned soft in India as its offtakes reduced from several downstream segments in line with the fall in inquiries post the festive season. In October, buyers restocked material under the expectations of rise in demand from polymer sector, however contrary to the scenario in the previous year, demand from polymer industry eventually stabilized in a shorter span of time. As VCM is a majorly imported commodity, reduction in import offers from Qatar and Germany led to a significant fall in its prices in Q4. Besides, drop in demand from end-use PVC segment in December majorly caused a decline in its consumption which led to higher inventory levels. Amidst the narrowed demand and supply gap, VCM prices in India dropped down to USD 1345 per MT in December.
Europe
Europe also encountered a surge in the prices of Vinyl Chloride Monomer (VCM) during the fourth quarter of 2021, owing to the extended shortage of the product in the regional market. The exorbitant shortage of VCM compelled Vynova, a major PVC producer to operate both its units at less than 50% efficiency. Although the availability of VCM started levelling by late-November, its prices continued to climb to the energy crises in Europe which led to higher plant operating cost. VCM after witnessing consistent surge in Germany settled at USD 1280 FOB Hamburg in mid-December.
For the Quarter Ending September 2021
North America
In North America, Vinyl Chloride Monomer (VCM) prices observed a steep rise during this quarter, backed by firm demand from downstream PVC manufacturers. In addition, hike in the values of upstream Ethylene also supported the pricing trend of VCM. Moreover, Ida hurricane made landfall at port Fourchon, Louisiana in August end due to which several manufacturers were compelled to shut down their production capacities that further impact the prices of VCM. Westlake chemical declared force majeure on VCM and downstream PVC on August 31 due to power outages. Similarly, Formosa, also imposed a turnaround at its VCM production plant as a repercussion of Ida hurricane. Amid critical shortage in USA, prices of Vinyl Chloride Monomer and its downstream derivatives rose effectively during the timeframe.
Asia
In Asia, a steep rise in the prices of Vinyl Chloride Monomer was observed during the third quarter, backed by the constraint availability and sturdy demand from downstream sectors. Supply of VCM and its downstream PVC tightened in the Asian as well as international market after the arrival of Ida hurricane in August in the USA. Crippled supply of raw materials led to the surge in the VCM prices during this quarter. As VCM is primarily imported in India, its prices gained tremendous values due to lower imports from China and US following host of supply challenges in these two countries. Moreover, exorbitant shipping charges and availability of containers further sent ripples to the prices of VCM in India. CFR-Tuticorin prices of VCM traced uptrend from USD 1118.66/MT to USD 1212/MT in the July-September timeframe in India.
Europe
Europe also encountered a surge in the prices of Vinyl Chloride Monomer (VCM) during the third quarter, followed by the solid demand from downstream PVC industry. In this quarter, pricing trend of VCM in the European market was a spillover effect of the scenario in the international market. Moreover, supply shortage due to lower imports and high freight charges also contributed to the hike in the prices of VCM. FD Hamburg VCM monthly average prices stood at USD 1125/MT in September showcasing a marginal spike by USD 30/MT since July.
For Quarter Ending June 2021
North America
Vinyl Chloride Monomer (VCM) prices witnessed consistent increment during this quarter across North America region, backed by firm offtakes from downstream PVC manufacturers. Amid critical shortage of upstream Ethylene in USA, prices of downstream derivatives including Ethylene Dichloride rose effectively in the time period which ultimately led to arise in VCM prices as well. Besides, revival in economy after successful vaccination drive, increased the demand for VCM from its major downstream PVC sector. The offtakes effectively improved month over month during this quarter, which fairly contributed to the rise in prices. Therefore, prices of VCM were assessed as USD 1106/MT during the final week of the quarter in the USA.
Asia
A mixed demand supply outlook was observed in the Asian market for Vinyl Chloride Monomer (VCM) during this quarter, where the demand for VCM varied country over country. Major manufacturers in China, experienced firm to stable demand for VCM from PVC manufacturers, as the economic activities effectively recovered from the pandemic, which increased the demand for PVC in the domestic market. While in India, prices fluctuated with resurgence of pandemic cases in the country, that reduced the offtakes from downstream PVC manufacturers during the month of May. Later, as the demand increased during the second half of June, prices rebounded effectively. Therefore, prices of VCM rebounded from USD 1362/MT to USD 1397/MT in the May-June timeframe in India.
Europe
Europe also experienced a steep rise in prices of Vinyl Chloride Monomer (VCM), backed by firm demand from downstream PVC manufacturers. During this quarter, prices of all the downstream derivatives of Ethylene rose due to its shortage. In addition, logistical issues and rising production cost also escalated the upward price trajectory of VCM along with its downstream PVC across the region during this timeframe. Moreover, lower imports from USA also remained a major concern, as it also induced an effective shortage of upstream in the region.
For the Quarter Ending March 2021
North America
Winter storm disrupted the production activity of North America during Q1 2021, exerting pressure on chemicals prices as the demand for most of the chemicals remained firm. But in case of VCM, production of PVC remained very low and demand for VCM is directly proportional to the production of PVC, which remained halted. Thus, the VCM demand remained low throughout the quarter, Hence VCM prices faced a downward trend after January 2021 and settled at USD 1180 per MT during March, which were previously observed at USD 1220 per MT during January 2021.
Asia
In Asia, prices for VCM encountered an upward trend during January and February which later came back to value lower than in January. Chinese lunar holidays created a temporary shortage across the region which supported the price of VCM in the global market. Later during March when production resumed to its normal and inventory levels got restabilised, prices followed downward trajectory in the Asian market. In India, price of VCM dropped down to USD 900.77 per MT in March which was observed as USD 918.14 per MT during January 2021.
Europe
Europe faced shortage of PVC and VCM chemicals due to lower imports from USA during this timeframe. While the market supported the prices of PVC across the region due to strong demand and insufficient supply, but VCM demand remained on low pace due to lower production activity hence the average prices maintained its value throughout the quarter.
For the Quarter Ending September 2020
North America
The supply of VCM remained snug throughout Q3 because of power outages heard across the production units, forcing manufacturers to stop on-site production. Hurricane Laura forced shut down of the Westlake chemical’s pair of VCM plants with a cumulative capacity of 952.5 KTPA since Aug. 27, thereby impending a huge drop in the region’s production levels. The availability of VCM for export was restricted despite a substantial rise in the global demand for PVC. Supply tightness and robust demand pushed up the VCM pricing curve which reported new hikes during the third quarter.
Asia
In Q3 2020, the demand for VCM edged up with strong PVC demand which witnessed a sharp uptick as most of the countries announced a gradual lift in restrictions over the construction activities imposed during Q1 and Q2. India and other South Asian countries started importing and manufacturing VCM to meet the growing demand of PVC resin from the downstream construction and manufacturing sectors. CFR India offers were raised to around USD 870 per tonne, tracing an expected uptrend. Japanese demand for the VCM rose to the year’s high in July driven by high volume exports. A leading Japanese PVC producer Shin-etsu Chemical registered strong demand from the US and Canada, buoyed by higher usage of building material for home maintenance.
Europe
The European VCM market in Q3 witnessed tightness due to planned and unplanned outages creating potential shortage in the product supply. VCM production site of INOVYN at Rafnes, Norway was taken off-stream due to technical issues prevailing in the plant’s operations. Supply tightness was heightened by the immediate shutdown of the reactor of Spolana’s Elbe Neratovice plant. Increased demand for PVC brisked the trading activity across European ports. The region’s VCM consumption witnessed a double-digit decline in Q2 because of the coronavirus-related lockdowns. However, sentiments were upbeat moving into Q3 buoyed by pick up in the construction sector.
