PVC Market Intelligence

Industry Outlook & Drivers

Global Market Outlook on PVC

• Global demand is expected to grow at 3.8 percent CAGR through 2016–2022
• Construction and applications in electrical and electronics segment are expected to drive the demand in the upcoming years
• Applications in consumer segment are expected to witness moderate growth
• PVC demand in medical applications would most likely witness a further fall in Western Europe and North America, due to safety concerns
• The PVC prices outlook (Q3 2019 vs. Q2 2019): North America: 1 per cent Increase, EU: 6 per cent Decrease, and Asia: 4 per cent Decrease.
• The global PVC market share: North America: 13 per cent, EU: 14 per cent, Asia: 66 per cent, and Others: 7 per cent.
• Challenges/opportunities in the PVC market: Developing mercury-free catalyst to reduce environmental concerns. Explore more applications in electrical and electronic segments other than wires and tapes.
• According to a market forecast, the key demand drivers: Construction, electrical and electronic applications. 

Demand Market Outlook

• The overall PVC market is observed to be currently oversupplied, with supply and demand gap likely to reduce in the upcoming years
• The US PVC producers are anticipated to use their low-cost feedstock position from natural gas to become global suppliers
• Asia and South America are likely to witness higher growth compared to other regions

Industry Best Practice

Engagement Models

• Direct buying is the preferred engagement model in the industry
• CPG companies outsource their packaging requirements to their converters, since it helps them to focus on their core business
• Consortium buying is not a common practice for CPG players in the resin market
• Opportunities to tie up with major downstream segments, like construction, could be utilized to be benefited with discounts for better volume

Contract Models

• Market price contract: The supplier supplies the commodity at market price or benchmark price
• Fixed contract: The margin of supplier is fixed throughout the contract period or fixed price is locked for the contract period
• Contract revisions: Quarterly contracts are generally preferred in this industry

Global Market Size: PVC

• The global PVC market is forecasted to grow at a CAGR of 4.7 percent to reach around $46.6 billion by 2022
• The major growth drivers include applications in construction, electrical and electronics segment, etc.
• Growth in consumer goods applications is anticipated to remain modest during this period
• The global PVC market size was estimated at over $35.3 billion in 2016, with Asia driving the overall demand
• Applications in electrical and electronics segment in Asia are anticipated to favor high growth rates
• Growth in construction and automobile industries in developing regions, like Asia and Middle East, would most likely add to the positive effect.

 Market Overview

• Currently, North American ethane-based PVC is observed to be the cheapest, followed by naphtha-based PVC in Europe and carbide-based PVC in China. Naphtha-based PVC may not remain competitive than carbide-based at increased crude levels. Carbide-based PVC prices may increase, due to the supply shortage in China.

• The increase from feedstock ethylene prices supported an increase in PVC market price in the U.S. amidst a soft regional demand, balanced supply and cautious buying sentiments.

• According to PVC price trend, PVC market price decreased marginally by 3.4 per cent in the European PVC market.

• PVC prices portray a decline of 1.0 per cent during August. Increases from upstream market, ongoing and upcoming turnarounds across South East Asia.

• Three out of the top five suppliers are in North America, though Asia holds the majority of the global PVC capacity.

Why You Should Buy This Report

• The report gives information about the regional and global PVC market size, supply-demand trends, trade dynamics, import-export, market forecast, etc. 
• It gives Porter’s five force analysis of Asia, Europe and North America and lists out the major industry drivers and constraints.
• The report does a cost structure and pricing analysis and gives the PVC price trend, etc.
• It gives an overview of the supplier landscape and the SWOT analysis of major players like Westlake Chemical, Formosa Plastics Corp., Sinopec, etc.