North America PVC Market Sees Sharp Price Increase

North America PVC Market Sees Sharp Price Increase

Santiago Ramirez
2 min read

Surge in PVC Prices Prompts Global Supply Shifts and Market Dominance for US Exporters

The PVC market in North America has experienced a rapid surge in prices due to tight inventories, high production costs, and disruptions caused by the onset of the hurricane season. This has led to a USD 50/MT increase in US PVC export prices, driven by global supply shortages and logistical challenges, with Occidental Petroleum's force majeure in Texas further constricting supply. Additionally, rising freight rates have made Chinese PVC exports less competitive, enabling US producers to dominate markets in Africa, India, and South Asia at higher prices. The shutdown of Orbia's PVC plant in Mexico due to water shortages has also adversely affected supply, particularly in Latin America, where further tightening of the market is expected. Analysts anticipate that PVC prices in the US will continue to rise due to these supply constraints, prompting some buyers to postpone purchases in anticipation of a potential price drop later in the summer.

Key Takeaways

  • PVC prices in North America have surged due to insufficient inventories and high production costs.
  • US PVC export prices have increased by USD 50/MT, affected by global supply tightness and freight challenges.
  • Occidental Petroleum's force majeure and severe weather conditions have contributed to tightening PVC supply.
  • Chinese PVC exports to Africa and Asia have decreased due to rising freight rates, allowing US producers to gain market dominance.
  • The shutdown of Orbia's PVC plant in Mexico has further impacted Latin American PVC supply.


The sharp increase in North American PVC prices, stemming from constrained inventories, high production costs, and weather-related disruptions, holds significant implications for the market. Occidental Petroleum's force majeure and Orbia's plant shutdown exacerbate supply constraints, particularly impacting Latin America. Rising freight rates have diminished Chinese competitiveness, resulting in a shift in market dominance to US producers in Africa, India, and South Asia. In the short term, prices are likely to continue rising, prompting buyers to delay purchases. In the long term, these trends could drive increased investment in domestic PVC production and logistics improvements, with the goal of stabilizing supply and mitigating future price volatility.

Did You Know?

  • Force Majeure: A contractual clause that enables a party to suspend or terminate the performance of its obligations under extraordinary circumstances beyond its control, such as natural disasters or unforeseen events. In the context of Occidental Petroleum, the declaration of force majeure indicates their inability to fulfill supply obligations due to circumstances like severe weather conditions.
  • PVC (Polyvinyl Chloride): A commonly used type of plastic known for its durability and cost-effectiveness in various applications, including construction. Fluctuations in PVC market prices can significantly impact industries reliant on this material.
  • Logistical Challenges: Refers to difficulties in the transportation and delivery of goods, often arising from factors such as infrastructure issues, geopolitical tensions, or, in this case, severe weather conditions like hurricanes. These challenges can disrupt supply chains, increase costs, and affect product availability, influencing market prices and trade dynamics.

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