PVC price

Construction demand is the main driver of the PVC market. Pipes, window profiles and exterior cladding together account for about two-thirds of global PVC consumption, so new housing, infrastructure projects and renovation cycles feed directly into resin prices. The Chinese property sector is especially important. China accounts for roughly 45% of global PVC capacity and consumption, so Beijing’s housing policy, developers’ financing conditions and local-government infrastructure spending are all important signals for prices on the Dalian Commodity Exchange.

Chlor-alkali economics are the second pillar of PVC margins. Producers run integrated ethylene, chlorine and sodium hydroxide units, so the profitability of a PVC plant depends not only on the selling price of the resin, but also on the caustic soda market and the internal transfer price of chlorine. Market participants often measure profitability using the ECU margin, or Electrochemical Unit margin, which reflects the combined margin available from chlorine and caustic soda. Electricity costs, especially in Europe, are also a direct price factor because chlor-alkali electrolysis is power-intensive.

The regulatory environment is the third structural factor. The EU’s REACH regulation and US regulators have introduced restrictions on DEHP, DINP and other phthalate-based plasticisers, especially in toys, medical devices and food-contact products. These changes push formulations towards bio-based plasticisers and phthalate-free alternatives such as DOTP and DINCH.