After a 2 cent PVC hike in February, polyvinyl chloride (PVC) prices were mostly unchanged through the end of March. The demand for North America PVC market was valued around 8 billion in 2017 and is expected to grow at a CAGR of a little over 2% over the period of 2018-2023. This growth can especially be seen in the building and construction industries as PVC can be used in many different building materials such as window frames and sills.
Spring demand has begun to emerge, but with an unknown strength, it is hard to tell how prices will be affected. This may be partly due to the flooding in the Midwest that has caused delays in shipping and other supply chain problems. As the demand picks up we should see some upward pricing pressure build. The United States market is the largest market with PVC leading plastic resin used to make pipe in the industry. This material is expected to remain the markets leader until 2023.
Export demand will also see some growth as infrastructure in China and India continues to expand driving this demand. Along with growing infrastructure China, Brazil, and India have seen an increase in disposable income in their consumers acting as a factor driving demand in consumer applications for PVC such as in the electronics industry. With this in mind, PVC prices are expected to be flat to slightly higher.