Does the nine-month drop of PVC price seem to be reversing?

Despite the forecasts of statistical data providers specializing in PVC, the price increase of up to 50-60 €/ton has been announced by European PVC manufacturers for February may come as a surprise to market players.

As confirmed by several independent and reliable market sources, the reason for the price increase is primarily the 85 € increase in the price of Ethylene, and secondarily the increased energy costs, which were not brought into price by European PVC manufacturers in the second half of last year due the price pressure caused by import PVC, as well as the recessive economic environment.

Market players also reported that import PVC sources - primarily from the US and Egypt -, which provided a competitive advantage last year have now dried up due to rising transport costs, higher-than-expected global demand and logistical problems. The sources believe that the post-pandemic opening of China can revive economic relations with the USA, thereby representing a new, more favorable market for American PVC manufacturers.

SZEPLAST suppliers have reported higher than expected turnover for January. The recent increased demand might be attributable to stock replenishment at the processing and consumer levels after the Christmas break, but at the same time, our colleagues are already forecasting a higher-than-expected activity for February too, which, in the absence of available import PVC resources, can be expected to give European manufacturers a basis for further price increase of the PVC dry-blends.

We do not know whether the trend will really reverse or whether we can only talk about a one-off price correction. In any case, we at SZEPLAST are constantly working to mitigate the market effects, provide our customers with products of stable quality, from raw materials of audited and strategic suppliers, predictably and on time.

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