MOSCOW (MRC) -- US exports of construction staple polyvinyl chloride (PVC) in the first four months of 2021 were 18.4% lower than in the January-April period of 2020, reflecting fallout from tight supply and strong domestic demand, according to S&P Global with reference to US International Trade Commission data released June 9.
The US shipped out 673,664 mt of PVC over January-April 2021, compared to 825,996 mt in the year-ago period, the data showed.
April 2020 marked the height of coronavirus pandemic-related shutdowns in the US, which hindered construction activity and prompted sharp production cuts. Upstream chlor-alkali rates plunged to 68% in April 2020 from 90% in March that year, industry statistics show.
In 2021, sustained subfreezing temperatures hit the US Gulf Coast and much of the US in mid-February, forcing widespread weeks-long petrochemical plant shutdowns. February chlor-alkali rates fell to 59% from 82% in January, and then rose to 71% in March and 80% in April, industry statistics show.
In the first four months of 2019, when there were no pandemic-related or freeze-related issues, the US exported more than 1 million mt of PVC, ITC data show. Exports in the January-April period of 2021 were 34.5% lower, illustrating the continued impact of the February freeze as well as turnarounds and operational issues that have kept US PVC supply tight.
Strong domestic PVC demand also shrinks export volume availability. In addition, domestic PVC demand has remained strong amid a continued housing boom fueled by consumers seeking more space when working from home amid the pandemic.
April 2021 housing starts reached 1.569 million units, according to US Census Bureau data. The year began with 1.625 million units in January, which plunged nearly 11% to 1.447 million units in February because of the freeze. Housing starts jumped 22.5% to 1.733 million units in March, reflecting a catch-up from starts hindered the month prior and retreated 11.5% in April.
PVC is used to make pipes, window frames, vinyl siding and other products.
As MRC reported earlier, Formosa Plastics USA, part of Formosa Petrochemical, left force majeure (FM) on PVC supplies from its plants in North America in force as of 2 June, 2021. And OxyChem, the chemical division of Occidental Petroleum, left FM on PVC shipments from its plants in North America in force as of 2 June, 2021.
According to MR''s ScanPlast report, Russia's overall PVC production reached 346,100 tonnes in the first four months of 2021, down 1% year on year. All producers decreased production volumes over the reported period, with the exception of the Bashkir Soda Company.
MRC