Polyvinyl chloride Europe prices, markets & analysis

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What's happening in the Polyvinyl chloride market?
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Polyvinyl chloride overview Transcript

Polyvinyl chloride, also known as PVC is a plastic resin. Its feedstocks are chlorine and ethylene. Its main end use for PVC is in the construction industry with pipes and profiles, windows and doors accounting for a large proportion of consumption.

Other applications include the automotive industry, cables and flooring.

The key driver in the market tends to be season led. Spring and summer are the strongest periods of construction activity. Movement in feedstock ethylene and chlorine prices also impact the PVC market as do events in the wider chloralkali chain as producers have to balance the electrochemical unit in order to make the business profitable.

The economy is also a key driver for PVC as downstream construction is strongly linked with GDP. The outlook for the market is unclear, but it is widely agreed that future growth will be largely driven by the emerging economies of Asia, Latin America, Africa and Eastern Europe.

Demand in the Eurozone is widely expected to contract as state measures delay public investment in construction. New plants coming on stream in Asia, Middle East, central and Eastern Europe will mean more competition for developed economies.

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