- Polyvinyl alcohol prices followed a mixed-to-firm trend globally, supported by rising production costs and supply disruptions, while demand recovery remained uneven.
- Feedstock pressure increased due to higher upstream costs and logistics disruptions linked to the Iran war and the Strait of Hormuz, raising manufacturing expenses.
- Downstream demand remained mixed, with steady consumption from packaging, textiles, and adhesives, but weak industrial activity limited stronger growth.
Asia
The prices of polyvinyl alcohol witnessed an uptrend in the Asian region due to constrained supply, along with the high cost of production in the region. In China, owing to lower operating rates and rationalization in the petrochemicals complex, the availability of supply was low, thereby pushing prices higher. With the growing dependence on imports for meeting local requirements, the competition for cargoes grew stronger, and due to factors such as the war in Iran and problems in the Strait of Hormuz, logistics expenses were higher, resulting in rising prices by the close of the quarter.
Europe
In Europe, polyvinyl alcohol prices continued to be relatively stable for most of the quarter due to structural oversupply and weak demand. Weak operating rates at crackers, coupled with derivative imports, ensured sufficient supplies that did not allow prices to go up. Demand for the material was low from packaging, construction, and industrial use. Nevertheless, high logistics and energy prices owing to the war in Iran and disruptions in the Strait of Hormuz led to higher production costs. Consequently, the polyvinyl alcohol price curve witnessed upward pressure by the close of the quarter.
North America
In North America, polyvinyl alcohol prices were relatively stable with some upward pressure due to higher costs. Supply surplus, coupled with low demand from construction, coatings, and industrial end-use markets, restrained prices from going up. On the other hand, rising costs in production owing to higher energy and logistics costs caused by the war in Iran and disruptions in the Strait of Hormuz supported a rise in prices.