As of August 2024, the prices for Chlorinated Polyvinyl Chloride (CPVC) resin in the APAC region, specifically in Thailand, Japan, and India, have seen an increase of approximately 4% month-on-month, hovering around $1,720 per metric ton. This rise follows an earlier contraction in Q1 and Q2 2024, when supply chain disruptions in key manufacturing hubs such as Japan and India caused a drop in available material by 2 million metric tons due to factory maintenance and temporary shutdowns. The CPVC market in these countries has also been impacted by a steady rise in demand from construction and plumbing sectors, where CPVC is favored for its superior resistance to heat and corrosion.
In Q3 2024, the demand for CPVC remains robust, particularly in India and Thailand, with year-on-year growth of 6% in the construction industry. This is driven by large-scale infrastructure projects and the increasing use of CPVC for water and sewage piping, owing to its enhanced durability. Meanwhile, Japan’s CPVC market remains stable with minor fluctuations, as the country’s demand is primarily driven by industrial applications. However, geopolitical issues, particularly in the South China Sea, are contributing to some supply chain volatility in Thailand, affecting raw material imports.
Looking ahead, Q4 2024 is expected to witness continued pressure on CPVC prices, as supply disruptions in key manufacturing zones, including production cutbacks in the region, are anticipated to limit available resin. Despite this, Thailand’s ongoing investments in production capacity expansion, particularly in the petrochemical sector, may help alleviate some of the pressure by adding new output.