Commodity Market Report

Vinyls - Vinyls global monthly market overview March 2019

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21 March 2019

Vinyls - Vinyls global monthly market overview March 2019

Report summary

PVC producers in the US achieved a partial price increase in February, and they continue to press for more. The price increase push is rooted in the loss of revenue on caustic soda, their critical co-product, which continues to disappoint. Caustic prices may be finding a bottom globally, but aren’t forecast to bring significant help to chain margins anytime soon. The PVC price increase was the result of some brute force, as they pushed PVC uphill against declining ethylene feedstock costs in recent months. Globally, PVC prices are weaker after a period of some strength, falling on low demand in China and India. Two US PVC majors are in the start up phase of their ethane cracker investments, altering the landscape in the merchant ethylene market.

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