Asia polyvinyl chloride (PVC) prices reflect a five-year low relative to US spot levels, but both price points reflect five-year highs on an absolute basis.
Source: Bloomberg, C-MACC, March 2021
Today, an item standing out to us is that China Polyvinyl Chloride (PVC) export volume hit a four-year high in February, and we note that both caustic soda and PVC price reflect increases in March relative to February. This development is positive for Asia PVC producers and global EDC suppliers, such as Olin. We also view it as notably positive for US integrated PVC producers, such as Westlake, OxyChem, Formosa, and Shintech. We recognize that multiple turnarounds are currently underway, and that several US producers are still impacted by the freeze. However, we see PVC as a major beneficiary of the many global stimulus initiatives we expect to see this year.
