PVC prices to rise significantly in 2014
According to PetroChem Wire's PVC & Pipe Report, PVC is expected to rise by five cents per pound in the first two months of the new year.
Much of the increase can be attributed to the higher cost of ethylene, which is used in the manufacture of the plastic.
"PVC prices are usually under pressure during the fourth quarter as market seasonality kicks in and demand drops, but this year rising spot ethylene prices and strong export demand kept a floor under the market," said Donna Todd, senior editor for PVC & Pipe for PetroChem Wire.
PVC is the most commonly used plastic in construction and is often used in plumbing pipe and vinyl siding. Converters, and especially pipe manufacturers, are expected to be hit hardest by this change.
According to Todd, prices were down one cent per pound in October and were unchanged in November. Prices are expected to stay stable in December as well.