A situation that has become frankly paradoxical, in which experts see the upward trend in PVC prices extending for the second quarter of the year.
There is talk of the eleventh consecutive increase that is throwing in the panic producers of compounds, finished products and the components supply chain.
The reasons that led to this situation are articulated and, at the same time, linked together as we have already been able to report in the articles that you can read at the bottom, on the world trend of raw materials.
The problem is not only the unbearable level of prices for raw material converters, who are in difficulty in respecting the contracts made, but also the lack of continuous and sufficient supplies to sustain production.
In the face of a sustained order backlog, some production plants are being stopped due to the impossibility of receiving the raw material on time.
We must also consider that the approach of the milder season in Europe normally corresponds to a resumption of activities in the construction and agricultural sectors, in which the demand for PVC products becomes robust.
To respond to the requests of customers who purchase PVC products, both the warehouse of finished products, set up in the months preceding spring, when the level of orders is usually lower than production, and the daily production are usually involved .
This situation did not occur in the winter months, as producers' stocks are generally low or nil and daily production suffers from less than optimal inputs of raw materials.
Some operators, especially in the pipe sector, have stated that they are considering whether to suspend the production of PVC pipes in favor of HDPE in order not to lose turnover in such an important moment.
It should also be considered that not only the now chronic lack of raw material is negatively affecting the production of PVC products and compounds, but also that linked to the additives that are necessary for production.
One of all is the plasticizer which, being scarce on the market just like the raw material to which it must be bound, prevents the smooth running of production activities.
Automatic translation. We apologize for any inaccuracies. Original article in Italian.