In Q1 2024, the Vietnam PVC Compound market experienced bearish trend of 2% due to the reduced demand from the downstream construction industry owing to festivals like Lunar New Year which hampered the demand of product. While the supply of the product in the country was high. Moreover, the poor cost support from the feedstock Ethylene and Chloride prices helped to ease production cost and supported the price trend of the product.
In Q2 of 2024, Vietnam PVC compound market prices experienced a mixed trend as in the first two months of this this quarter prices were in upward direction while in the last month prices has fallen and resulted a stable trend. This stable trend is due to the PVC compound producers that have reduced output due to weak demand in the downstream construction sector, while converters and distributors are keeping inventory levels low due to amid financial pressures.
By Q3 2024, the PVC Compound market experienced a bearish trend in Vietnam and the prices were around 1210 USD/MT FOB Haiphong. Weak demand from key sectors like construction and packaging resulted in reduced orders and excess inventory. Additionally, an oversupply situation emerged as producers increased production, further pressuring prices downward. This decrease was due to declining seasonal demand and increased supply in the downstream industry.
It is anticipated that in Q4 2024, the price of PVC Compound may likely decrease in the global market. This expected decline can be attributed to lower demand associated with the arrival of the winter season, which typically leads to a slowdown in construction activities. As a result, the reduced need for PVC compound may significantly impact pricing. Additionally, the destocking activities that commonly occur at the end of the year could further influence the price trend, potentially resulting in a bearish outlook for the PVC compound market during this period.
