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Vinyl Chloride Monomer (VCM) Pricing

Overview

Market Overview

Asia

In Q3 2020, the demand for VCM edged up with strong PVC demand which

witnessed a sharp uptick as most of the countries announced a gradual lift in

restrictions over the construction activities imposed during Q1 and Q2. India

and other South Asian countries started importing and manufacturing VCM to

meet the growing demand of PVC resin from the downstream construction

and manufacturing sectors. CFR India offers were raised to around USD 870

per tonne, tracing an expected uptrend. Japanese demand for the VCM rose

to the year’s high in July driven by high volume exports. A leading Japanese

PVC producer Shin-etsu Chemical registered strong demand from the US

and Canada, buoyed by higher usage of building material for home

maintenance.

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data/vinyl-chloride-monomer-69

Europe

The European VCM market in Q3 witnessed tightness due to planned and

unplanned outages creating potential shortage in the product supply. VCM

production site of INOVYN at Rafnes, Norway was taken off-stream due to

technical issues prevailing in the plant’s operations. Supply tightness was

heightened by the immediate shutdown of the reactor of Spolana’s Elbe

Neratovice plant. Increased demand for PVC brisked the trading activity

across European ports. The region’s VCM consumption witnessed a double-

digit decline in Q2 because of the coronavirus-related lockdowns. However,

sentiments were upbeat moving into Q3 buoyed by pick up in the

construction sector.

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Vinyl Chloride Monomer (VCM) Pricing

Overview

North America

The supply of VCM remained snug throughout Q3 because of power outages

heard across the production units, forcing manufacturers to stop on-site

production. Hurricane Laura forced shut down of the Westlake chemical’s

pair of VCM plants with a cumulative capacity of 952.5 KTPA since Aug. 27,

thereby impending a huge drop in the region’s production levels. The

availability of VCM for export was restricted despite a substantial rise in the

global demand for PVC. Supply tightness and robust demand pushed up the

VCM pricing curve which reported new hikes during the third quarter.

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Vinyl Chloride Monomer (VCM) Pricing

Overview

Methodology

ChemAnalyst gathers information through primary research surveys conducted

with various Vinyl Chloride Monomer manufacturers, spread across

the domestic and international markets, suppliers and dealers/distributors to

gain insights into value-chains and demand-supply scenario to assess the

market situation. Thorough study of the company’s annual reports and

secondary sources such as exhaustive search on credible paid databases,

including our internal database is done to verify the information. All the

collected information is analyzed, evaluated and presented in chronological

order to depict a meaningful and clear picture of the concerned market.

Our dedicated team of industry experts comprehensively monitors and

analyzes various aspects of the Global Vinyl Chloride Monomer market. The

team analyzes various industrial segments, strategic viewpoints and

provides an analysis of the industry’s performance in the long run. This would

enable our clients in efficiently plan their future investments, mitigate risk,

understand the cost dynamics and strike out a balance amidst market volatility.

Critical examination of the impact of COVID-19 pandemic on the global

supply chains and shift in demand patterns with change in buying behavior of

consumers across the globe.

Several ongoing development projects across industries are tracked,

followed by the details of major projects in the development stage, which can

positively or negatively influence Global Vinyl Chloride Monomer market.

Pricing is captured through exhaustive primary interviews with domestic and

international manufacturers, traders and importers and customers on monthly

and yearly basis.

Finally, region-specific markets for Vinyl Chloride Monomer are analyzed

and region-wise demand pattern is tracked.

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Vinyl Chloride Monomer (VCM) Pricing

Overview

About

Vinyl Chloride Monomer (VCM) is one of the majorly used commodity

chemicals with the formula CH2=CHCl. VCM, being a gas needs to be

transported in liquified state under high pressure. It is high toxic, flammable

and carcinogenic in nature. It is exclusively used in the production of polyvinyl

chloride (PVC) which is majorly used in the construction industries. Therefore,

the demand of VCM is strongly linked to the region’s PVC consumption, which

directly links with the region’s economic development. China is the largest

manufacturers of VCM with around 40 percent of global capacity followed by

the United States. As VCM majorly used in the manufacturing of poly vinyl

chloride. VCM is generally produced by the reaction of ethylene and chlorine to

produce Ethylene Dichloride (EDC). The EDC thus product is made to undergo

thermal cracking to form VCM. VCM is generally produced via two process,

first by the direct reaction of chlorine with ethylene and second, by

oxychlorination in which ethylene reacts with chlorine in the presence ofhydrogen chloride.