PVC price trend is expected to witness a slump in Q1 2024

After a tough time faced in the PVC market throughout 2023, there is a slight anticipation of facing profitability pressure in the first quarter of the year 2024. The anticipated pressure build-up can be slated to the low global demand arising from the slow recovery of the global economy. Moreover, the situation of overproduction leading to over-availability makes it difficult for PVC prices to stabilize.

Price trends of Polyvinyl Chloride or PVC remained low throughout 2023. The reduction in the demand for PVC from the downstream industries, specifically the construction sectors, made it difficult for investors to invest in PVC material during 2023. Moreover, the prevailing economic uncertainty contributed to the downturn in spot prices.

Various factors concluded a sluggish trend in the European market. The high inflation, elevated interest rates, and uncertainty in import facilities altogether contributed to a fluctuation in the price trend of PVC in the European market. The low demand from the downstream industries, due to the uncertain market status, led to the buyers buying cheaper materials from the US and the Middle East. However, the prevailing shipping issues made the investors move towards the locally made plastic available in the European market. Moreover, the Suez Canal issues made it difficult to get PVC material through imports.

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Despite these shipping and transportation issues, the low demand is dominant and is affecting the prices of PVC in the commodity market. The fluctuating prices and the uncertain market status are expected to remain for the upcoming months of 2024.

According to the Procurement Resource, the PVC market remained sluggish in the fourth quarter of 2023. The oscillating prices due to the declining market demand amidst the prevailing import and shipping issues resulted in a downturn in the prices in the first quarter of 2024. The market is expected to remain low in the upcoming months of 2024.