Polyvinyl Alcohol Prices Remain Steady Amidst Low Textile Demand in the Western Region

In the US market, Polyvinyl Alcohol prices have demonstrated remarkable stability this week, a resilience largely attributed to the unwavering consistency in the pricing of its primary raw material, Vinyl Acetate Monomer (VAM). The Polyvinyl Alcohol downstream textile industry, both domestically and internationally in nations such as Belgium, the Netherlands, and Germany, continues to exhibit robust and sustained demand for Polyvinyl Alcohol. This steadfast demand is further fortified by the stability observed in Natural Gas prices, a pivotal factor in ensuring a consistent production cost within the US market.

Despite a marginal increase in the Purchasing Managers' Index (PMI) from 49.80 to 50, signaling a contraction in the manufacturing sector, domestic manufacturing facilities have maintained a reliable operational pace. This operational stability is credited to downstream industries' sustained and unwavering demand. As of the current week, the cost of Polyvinyl Alcohol feedstock VAM in the US market remains unaltered.

Recognizing the imperative need for Polyvinyl Alcohol downstream textile industry integration into procurement strategies, ACT Executive Director Rachel Kibbe took proactive measures by submitting a letter to the Biden-Harris Administration on behalf of the coalition. The letter acknowledges the administration's commendable efforts to increase the procurement of sustainable products and services and underscores the substantial impact of downstream textiles, particularly Polyvinyl Alcohol, on the US waste stream and greenhouse gas emissions.

Similarly, in the German market, Polyvinyl Alcohol prices have maintained stability, owing to consistent import prices from China and the steady pricing of the primary raw material, VAM, in China. This steadfastness has extended to Polyvinyl Alcohol imports from China, sustaining market stability. Despite subdued demand from the textile industry in Germany, the stability in coal prices has played a crucial role in maintaining a consistent production cost. Even with a slight increase in the PMI value from 39.60 to 39.10, indicating a contraction in the manufacturing sector, the prices have remained steady.

As per the information provided by the ChemAnalyst database, there is an anticipation of a short-term increase in Polyvinyl Alcohol prices. This expected upward shift is attributed to the escalating prices of Feedstock Acetic Acid. Despite this, the forecast indicates that natural gas prices are expected to remain relatively low, acting as a mitigating factor against potential rises in production costs. Furthermore, the outlook suggests that downstream industries, with a specific focus on the Polyvinyl Alcohol sector, are not expected to undergo substantial growth in demand during the fourth quarter of 2023.