Chlorine value chain: PVC

DERIVATIVE 34%

■ Half used in construction. Also for film, sheets, bottles, insulation and plumbing

■ In Europe, falling crude, naphtha and ethylene hit prices, despite low margins

■ Europe demand limited by economy while volatile feedstocks mean hand-to-mouth purchasing

■ In Europe, the INEOS/Solvay chlorvinyl JV will alter seller configuration and possibly pricing if supply/demand is impacted

■ US PVC still enjoys a production cost advantage from low-cost feedstocks, but lower crude has eroded that advantage

■ US prices moved down as ethylene costs lowered and availability improved, but are now recovering

■ Northeast Asia is a net exporter of PVC, with China responsible for more than 40% of all volumes exported in 2014

■ Common export destinations include India, China, and southeast Asia

■ Lower-priced carbide-based PVC from China is pushing Asia prices down

■ Southeast Asia is a net importer of PVC after major PVC producers closed down