PVC Prices Soar to Record-High as Homebuilding Becomes Even More Expensive
It appears that homeowners and homebuilders just can’t get a break. Skyrocketing lumber prices were at the center of attention throughout most of the pandemic, and although they have abated from April’s record-highs, other key building materials— such as vinyl siding, doors, and windows— continue tot keep homeowners’ pocketbooks drained as PVC prices explode.
PVC, a major building material used to produce all sorts of house materials such as window frames and water pipes, has jumped to a new record-high of around $1,900 per metric tonne, according to data from ICIS cited by Bloomberg for the week of September 10. The latest increase marks a jump of 28% compared to the beginning of the year.
The sharp increase in PVC prices is due to Hurrican Ida, which temporarily decimated nearly 60% of America’s polyvinyl chloride production, marking yet another setback for the Gulf Coast’s industrial production sector. Given that the US is one of the largest exporters of PVC materials following a strengthened petrochemical production amid the recent shale boom, buyers will have no choice but to source materials elsewhere.
“We’re now hearing some buyers there are looking to Asia for supply at the moment,” explained ICIS head of North America Jeremy Pafford. “Expectations are that the tight supply situation will continue for several weeks.”
Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.