Home PVC resin prices rise during the early part of 2021 putting pressure on PVC product prices

PVC resin prices rise during the early part of 2021 putting pressure on PVC product prices

Press Release: June 22, 2021

 Early 2021 has seen an increase in the wholesale cost of PVC resin which is putting pressure on manufacturers to increase the cost of their PVC manufactured products. PVC is a versatile product that is used in the manufacture of many household and business products including the majority of our PVC Strip Curtains and Welding Screens

Many industries have witnessed, and experienced price increases due to pandemic-related challenges, and a shift in the balance between supply and demand as many industries shut down during early and late 2020 and at the beginning of 2021.  Key price pressures have come from the overall rising costs of business operations such as labour, distribution, and raw PVC resin prices. 

According to an article in Plastic News, PVC prices rose for 5 consecutive months and since June 2020, prices were 20% higher at the end of November than they were at the beginning of June. The magazine also said that the rise in demand was partly driven higher by the quarantine results on household projects, pointing out that the construction industry typically “accounts for about 60% of the PVC consumption in the United States of America and Canada”. 

Another leading source of market information, Plastics Technology wrote an article in October 2020, about the relentless rise of PVC prices during 2020. According to the magazine’s research, PVC prices went up three times in just two months because of “a very tight market, a strong increase in demand from the construction industry, notably higher export prices, significant reductions in availability, and the late-settling September ethylene contract price increase,” which contributed to global PVC production costs. 

In the first 3 quarters of 2020 (January through to September) there was limited availability of resin from multiple PVC makers which according to S&P Global, was caused by Chlor-alkali production and hurricane damage. 

The world has also witnessed significant changes in consumer as well as business behavior, such as the accelerated growth in online shopping and higher delivery expectations which due to the increase in the pandemic resulted in higher transportation costs, both on a global and local level. These changes will undoubtedly continue to impact businesses and the cost to operate as rates increase in the year ahead. 

Rayflex is not immune to these rising costs and we have worked hard to minimise the impact of these price pressures on our customers as much as we possibly can; this includes extending our price promise guarantee throughout 2021 and absorbing as much of the external cost increases as we can.  

 

Notes to editors

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