What is the Current Price of PVC Resin?
The price of PVC resin is very important to any business or manufacturer. This resin is the basic material used to make plastics. Because of its importance, the price of it is subject to fluctuation. It can range from a low to a very high price. Therefore, it is very important to understand how to read and interpret these prices. This article will give you an overview of the current prices of PVC resin in different parts of the world. It will include prices in North America, Europe and Asia Pacific.
Prices in North America
PVC resin in North America continues to experience supply and demand issues. These include a lack of availability, inflated prices, and logistics issues. However, the market has recouped from weather-induced shutdowns and plant turnarounds.
With increased demand for durables, PVC resin prices have increased. The housing market continued to strengthen, leading to an increase in sales. It also helped that consumer spending on durables rose by 12 percent from the second to the third quarters of 2020.
The US PVC spot export price was unchanged from November to January, and was $730 to $740 per ton. The Houston FAS price remained unchanged as well.
Exports from Europe increased, while US shipments decreased. The upcoming startup of the Shintech PVC capacity is expected to have an effect on export prices.
Congestion in ports is also a challenge. This has led to the slow movement of containers and import material. It is also important to consider the transport costs. Bulk trucking is struggling to keep up with demand.
Prices in Europe
A strong supply-demand imbalance has sparked major feedstock shortages in Europe. This has led to sharp increases in resin prices. The situation is expected to improve as new installed capacity comes online. However, it remains to be seen how the global recession and war in Ukraine will impact PVC markets.
While the domestic market is recovering, exports and inventory are still growing. A weak Pound has benefited UK exports.
European producers are finding it hard to keep high prices in key export destinations. Amid lower prices, Chinese imports have become more competitive.
In January, EU producers rolled over their export prices for February shipments. However, some producers adopted energy price surcharges on their supply contracts. A sharp increase in energy costs due to the war in Ukraine has been a key factor driving PVC prices.
As a result, there is significant pressure on producers’ margins. Although some producers have taken steps to tighten their supply chain resilience, the issue remains.
Prices in Asia Pacific
PVC resin prices in the Asia Pacific region have been on a downward trend for the past few months. This is in contrast to the soaring prices witnessed in Europe. The reason for this is mainly the lack of demand in the off-season.
The regional market showed a steady decline in May. However, April was a better month, with strong demand from downstream construction industries. While the outlook for the second half of the year is not as positive as it was in early April, the market still looks a bit positive.
The rise in futures prices propelled the firming trend. As of August 3, Dalian futures prices are showing a weekly gain of CNY44/ton. While this has been largely stable since the start of the week, it is still a substantial amount of money.
In the last week of July, acetylene-based PVC prices were up by CNY300-350/ton. The domestic price of ethylene-based zhongtai pvc was also up, by CNY200.
Prices in India
The prices of PVC resin in India are likely to reach a record high in the coming years. As the demand continues to rise, the organised sector is expected to benefit from this.
However, the domestic PVC production capacity is insufficient to cater to growing demands. The cost of production is also high, leading to non-competitive pricing.
The gap between supply and demand has further widened with the onset of anti-dumping duty on PVC resin imports. While some Indian buyers have already started buying from lower levels, stockists have refrained from taking new orders.
The xinjiang zhongtai PVC market has undergone a significant shift over the past three months. A major producer in the country resorted to cutting local prices. Similarly, a few Indian companies have filed complaints with DGAD, seeking a significant reduction in the anti-dumping duty. The government has agreed to a proposal and is considering a cut of up to 5%.