The global PVC market saw a strong rise during the second quarter of 2026. Prices moved higher across most major markets during April and May as supply problems, higher energy costs, and shipping disruptions put pressure on the entire supply chain. The situation became especially difficult after the escalation of the US-Iran conflict and the closure of the Strait of Hormuz. These events affected the movement of crude oil, ethylene-related feedstocks, and petrochemical products, making it more expensive for producers and buyers to secure material.

The PVC price trend during the quarter was closely connected with the availability and cost of upstream raw materials. Ethylene is an important starting point for producing ethylene dichloride (EDC) and vinyl chloride monomer (VCM), which are then used to manufacture PVC. When ethylene and other feedstock costs increased, producers faced higher manufacturing expenses. At the same time, difficulties in moving cargoes through important shipping routes added freight and insurance costs for international buyers.

The impact was visible in both export and import markets. Countries that depend heavily on imported PVC faced higher replacement costs, while major exporting countries were able to maintain stronger offers because overseas buyers were willing to pay more to secure material. Construction, infrastructure, irrigation, water pipelines, wire and cable manufacturing, and industrial applications continued to provide basic demand support.

Another important factor during the quarter was crude oil. The rise in crude oil prices affected several parts of the petrochemical chain and increased overall production costs. Buyers who normally purchase material according to their regular schedules became more cautious as prices moved higher. Some companies brought forward their purchases to protect themselves from further increases, which added another layer of support to the market during April and May.

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By June, however, the situation started to change. The US-Iran ceasefire and the agreement to reopen the Strait of Hormuz helped reduce some of the uncertainty that had affected the market earlier in the quarter. Feedstock availability improved, shipping conditions became more manageable, and freight costs started to ease. As a result, many markets saw prices move lower in June.

At the same time, buyers became more comfortable waiting before making large purchases. Instead of building large inventories, many downstream companies focused on buying only enough material for immediate production. This change in purchasing behaviour reduced market pressure and encouraged suppliers in several regions to lower their offers.

China Market

China recorded a strong increase during Q2 2026, with export values from Shanghai rising by around 10.8% over the quarter. One of the biggest changes affecting the Chinese market was the removal of the 13% VAT export rebate from 1 April 2026. This policy change increased the effective cost of exports and encouraged producers and traders to adjust their sales strategies.

Before the new policy came into effect, many suppliers and traders tried to ship more material to overseas destinations. India and Southeast Asia were among the important destinations. This early shipment activity tightened availability and helped support export values.

Chinese producers also faced higher production expenses. Carbide-based PVC production was affected by changes in the costs of calcium carbide, coal, and electricity. These costs are important for producers using the carbide route, so increases in energy and raw material expenses provided additional support to market offers.

Domestic demand in China remained less impressive, particularly because of continued weakness in construction and real estate activity. However, steady export enquiries helped compensate for some of this weakness. Producers also remained relatively disciplined with their pricing while supply and feedstock costs were elevated.

The market changed in June. Lower EDC, VCM, and calcium carbide costs reduced production pressure, while high operating rates improved the availability of PVC. Export demand also became softer following the removal of the VAT rebate. As competition between Chinese suppliers increased, prices declined by around 7.5% during June.

India Market

India experienced one of the stronger increases in Q2, with domestic values from Ahmedabad rising by around 12.1%. The main support came from higher import replacement costs, stronger landed costs, and uncertainty around international shipping.

The changes in China's export policy also had an effect on the Indian market. With the removal of the export rebate, Chinese suppliers had to adjust their export economics. At the same time, shipping problems connected with the Strait of Hormuz increased freight and replacement costs for importers.

Demand from the Indian pipe and irrigation industries remained an important source of support. PVC is widely used in pipes, fittings, water management systems, electrical applications, and infrastructure projects. Even when buyers were uncomfortable with higher prices, regular consumption from these sectors provided a steady base for the market.

The situation became calmer toward June. Lower feedstock costs and improved import availability reduced some of the earlier pressure. The beginning of the monsoon season also encouraged buyers to become more selective with their purchases. During June, the market increased only marginally by around 0.8%, showing that the strong momentum seen earlier in the quarter had largely faded.

Egypt Market

Egypt recorded an increase of around 9.3% during Q2 for Chinese PVC delivered to Alexandria. Importers faced higher replacement costs because of increased freight, insurance, and general shipping uncertainty. These additional expenses made imported cargo more expensive.

Demand from construction and infrastructure projects provided another layer of support. Water transmission, sanitation, housing, and related projects continued to require PVC pipes and fittings. Some buyers also preferred to secure cargoes early because of uncertainty surrounding shipping routes in the region.

By June, shipping conditions improved and cargo arrivals became more regular. Buyers that had already replenished their stocks had less need to purchase additional material. As a result, prices declined slightly by around 0.4% during the month.

Vietnam Market

Vietnam's market increased by around 10.2% during Q2. Importers faced higher replacement costs because freight rates and transit times increased across important Asian shipping routes. PVC pipe manufacturers, wire and cable producers, and industrial users continued to provide stable demand.

Many importers purchased material to maintain working inventories and avoid production interruptions. This behaviour was understandable during a period when shipping schedules were uncertain and prices were moving higher.

The market became softer in June as shipping costs eased and Chinese cargo availability improved. Downstream manufacturers also became more careful about buying. Instead of building large stocks, they focused on their immediate production requirements. This resulted in a decline of around 7.1% during June.

United States Market

The US market recorded one of the largest quarterly increases, with FOB Houston values rising by around 36.5%. The market was supported by higher energy and feedstock costs as well as limited export availability.

The US-Iran conflict contributed to higher global energy costs, which increased the cost of ethylene, EDC, and VCM production. At the same time, demand from Latin America and other overseas destinations remained strong. Gulf Coast producers were therefore able to maintain firm export offers.

Higher refining margins and limited cargo availability added further support. Even though the US government released crude oil from the Strategic Petroleum Reserve to reduce pressure in energy markets, the broader international supply concerns continued to affect production economics.

June brought a clear correction. After the ceasefire and improved shipping conditions, feedstock costs began to fall. Export availability also improved, while buying interest from Latin America and Asia became weaker. As competition increased, Houston export values declined by around 12.4% during June.

Mexico Market

Mexico followed the movement in the US market because a significant portion of its imported PVC came from US suppliers. CIF Manzanillo values increased by around 34.2% during Q2 as higher FOB Houston offers and freight expenses raised the replacement cost of imported material.

Demand from construction, pipes, and industrial manufacturing remained steady. Importers continued to secure material to meet contractual commitments even when prices were high.

The situation changed in June as US export offers softened and cargo availability improved. Lower replacement costs encouraged Mexican buyers to become more cautious, while downstream manufacturers reduced purchases. PVC Prices declined by around 11.6% during the month.

Canada Market

Canada recorded an increase of around 30.8% during Q2. Higher import costs from the United States were the main reason behind the increase. Transportation and logistics expenses also added to the landed cost of material.

Demand from residential construction, infrastructure, and renovation activities remained reasonably stable. Distributors continued replenishing inventories because they needed to maintain supplies for their customers.

In June, the market started correcting as US export values declined and material became easier to source. Buyers also delayed some purchases because they expected prices to move lower. Canadian import values fell by around 10.7% during the month.

Japan Market

Japan saw a quarterly increase of around 31.4%. The market was supported by higher crude oil and feedstock costs, along with lower operating rates at some major chemical facilities.

Reduced operating rates at Shin-Etsu Chemical and Mitsubishi Chemical affected ethylene availability. Combined with higher energy costs, this increased the cost of producing EDC and VCM. Exporters were therefore able to maintain firm offers even though regional demand was not exceptionally strong.

The market weakened in June. Lower EDC and VCM costs reduced production expenses, while competition from China and Taiwan became more noticeable. Weaker buying interest from Southeast Asia also reduced export opportunities. As a result, Japanese export values declined by around 8.0%.

Taiwan Market

Taiwan recorded an increase of around 26.8% during Q2. Higher ethylene, EDC, and VCM costs supported the market, while logistical disruptions added to the overall replacement cost.

Taiwanese producers also benefited from stable export commitments to India, Australia, and Southeast Asia. However, competition became stronger toward the end of the quarter as Chinese suppliers became more aggressive in overseas markets.

During June, Taiwanese export values declined by around 10.0%. Lower upstream costs reduced production pressure, while comfortable inventories and weaker buying interest encouraged exporters to offer more competitive prices.

Australia Market

Australia recorded an increase of around 22.6% during Q2 for PVC imported from Taiwan. Higher freight costs, longer transit times, and firmer Taiwanese export offers increased the landed cost of imported material.

Demand from residential construction, infrastructure work, and water pipeline projects remained supportive. Distributors continued purchasing to meet existing requirements even though replacement costs were high.

The market weakened in June as Taiwanese suppliers faced stronger competition from China. Freight costs also moderated, helping improve import economics. Australian buyers became more cautious and waited for clearer signs of market direction. Prices therefore declined by around 7.3%.

Germany Market

Germany saw prices rise by around 34.1% during Q2. European producers were affected by higher electricity and natural gas costs, while disruptions to naphtha and LNG supplies created additional pressure on the regional petrochemical chain.

Reduced LNG availability following disruptions at Qatar's Ras Laffan gas facilities added to concerns about energy costs in Europe. Higher feedstock and energy expenses increased production costs for chlor-alkali and vinyl producers.

Infrastructure-related demand helped support the German market, even though overall construction activity remained moderate. Buyers were also concerned about prompt availability and therefore continued securing necessary volumes.

By June, European markets started to stabilize. Lower VCM costs, better availability, competitive imports from Asia, and weaker downstream demand pushed German values down by around 8.0%.

Belgium Market

Belgium recorded a Q2 increase of around 33.2%. Trading through the Antwerp petrochemical hub remained active, while higher energy costs and replacement values supported domestic offers.

Electricity and natural gas costs increased production expenses across Northwest Europe. Buyers also tried to secure contractual volumes because of concerns about supply and future replacement costs.

After shipping conditions improved, feedstock and logistics expenses started to decline. In June, better regional availability and cautious purchasing reduced spot market activity, resulting in a decline of around 7.9%.

Netherlands Market

The Netherlands saw an increase of around 32.7% during Q2. Rotterdam's importance as a major European distribution and trading hub meant that changes in import costs, freight, and replacement values quickly affected local pricing.

Suppliers maintained disciplined inventory management while buyers adjusted their purchasing according to higher replacement costs. Demand itself was not particularly strong, but suppliers were able to maintain firm offers because the cost of replacing material had increased.

In June, competitive Asian imports, lower logistics costs, and slower purchasing activity created downward pressure. Prices declined by around 7.8%.

United Kingdom Market

The UK market increased by around 32.5% during Q2. Higher electricity and natural gas costs increased domestic manufacturing expenses, while higher import replacement values provided additional support.

Demand related to utilities, infrastructure maintenance, and industrial applications helped keep the market active. Residential construction was less supportive, but buyers still needed material for ongoing projects.

The improvement in shipping conditions after the mid-June ceasefire helped the market move toward normal conditions. Lower VCM values and import replacement costs encouraged buyers to reduce their purchasing activity. UK domestic values declined by around 7.8% in June.

South Korea Market

South Korea recorded a Q2 increase of around 27.2%. Lower operating rates at LG Chem and disruptions affecting Middle Eastern naphtha shipments reduced feedstock availability and increased production costs.

Higher Chinese export values also supported regional negotiations. South Korean producers were able to maintain firmer offers because supply was relatively tight and export demand remained steady during much of the quarter.

The market softened in June as feedstock costs declined and Chinese carbide-based producers offered more competitive material. Weaker demand from India, Southeast Asia, and Turkey added further pressure. South Korean export values therefore fell by around 10.0%.

Brazil Market

Brazil recorded an increase of around 34.9% during Q2 for PVC imported from the United States. Higher Houston export offers and increased freight costs raised the replacement cost for Brazilian buyers.

Construction, sanitation, and pipe manufacturing continued to generate regular demand. Importers continued replenishing stocks even at higher price levels because competitively priced cargoes were not always easy to find.

By June, lower US export offers and improved freight conditions changed the market direction. Better cargo availability and cautious purchasing from downstream converters reduced replacement costs. CIF Santos values declined by around 11.5% during the month.

Market Direction After Q2 2026

The second quarter of 2026 showed how quickly the PVC market can react to changes outside the direct PVC production chain. Geopolitical tensions, crude oil, energy costs, feedstock availability, freight rates, and shipping routes all played an important role in determining market direction.

April and May were dominated by supply concerns and rising costs. Buyers were more willing to secure material because they were unsure how long shipping problems and higher feedstock costs would continue. This created strong support across most regions.

June was different. The ceasefire, reopening of the Strait of Hormuz, improved cargo movement, and lower feedstock costs gave buyers more confidence. Suppliers also faced stronger competition as availability improved. The result was a broad correction across many markets.

Going forward, the market is likely to remain sensitive to energy prices, shipping conditions, production rates, and downstream demand. Construction and infrastructure activity will remain important for consumption, particularly in developing markets where PVC pipes and fittings are widely used. At the same time, changes in Chinese exports and competition among Asian producers could have a major influence on international trade.

For buyers, the Q2 experience highlights the importance of watching both PVC fundamentals and wider petrochemical developments. A change in crude oil, ethylene, EDC, VCM, freight, or energy costs can quickly affect procurement decisions. Producers and distributors will also need to keep a close eye on inventory levels and regional demand as the market moves through the second half of 2026.

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About Price Watch™ AI

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