November 30, 2021 (MLN): The margins of Polyvinyl chloride (PVC)-Ethylene, the chemical used to produce PVC pipes and other plastic products, have increased by 1% WoW or $8/ton, reaching around $1,073/ton from $1,065/ton in the international market.
To note, after hitting an all-time high of $1,290/ton during the last week of October, PVC-Ethylene margins fell for three consecutive weeks before improving by 1%WoW during the last seven days.
The increase in margins is attributable to a 1% WoW decline in Ethylene prices (raw material for PVC), currently hovering at $1,035/ton owing to a decline in crude oil prices as the emergence of the Omicron variant of Covid stoked fears pertaining to global demand, a report by Sherman Securities highlighted.
Meanwhile, PVC prices remained flat on a WoW basis at $1,590/ton on the back of stable demand and tight supplies in the Asian region.
So far, in the ongoing quarter, average international PVC-Ethylene margins have been on the higher side at around $1,155/ton, up by 37% from the average $840/ton in the preceding quarter and it will average at $1,125/ton if international prices sustain at current levels, the report said.
