Polyvinyl Chloride (PVC) Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every company and its procurement unit look to bargain for the best deal while procuring a set of products or subscribing to a set of services. Rate benchmarking contains price/cost comparison of multiple sets of products/services to evaluate the most effective combination that can potentially assist the procurement team in getting the optimal rate.

In May 2024, the average PVC prices in North America spanned in the range of USD 0.8/KG - USD 0.9/KG, the average prices in Europe fell within the range of USD 1.2/KG - USD 1.3/KG, and those in Northeast Asia varied within the range of USD 0.7/KG - USD 0.8/KG. Moreover, in May 2024, the average prices in Africa spanned within the spectrum of USD 0.8/KG - USD 0.9/KG, those in South America spanned within the range of USD 0.9/KG - USD 1.0/KG, and those in India ranged within USD 0.85/KG - USD 1.05/KG.

Buyers usually choose to procure PVC either locally or regionally to improve supply chain-related costs and procurement costs. China and India have the most economical PVC rates within Asia Pacific due to the low costs of raw materials, labor, and equipment. Sweden and Germany have relatively cheaper PVC rates within Europe due to advanced manufacturing infrastructure, skilled labor, robust supply chain, and economies of scale.

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Labor cost is one of the key components of the total cost incurred while offering a product or service. Therefore, an organization must decide whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, Engineers working in Solvay S.A. and Formosa Plastics Corporation receive a 10% - 15% higher base salary as compared to the salary received by Engineers working in INEOS AG and LG Chem, Ltd. However, the year-on-year increment rate majorly depends on the Key Result Areas (KRAs).

Organizations may find it burdensome to constantly track all the latest improvements in their supplier landscape. Outsourcing the activities related to collecting intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help companies stay up to date with the latest innovations and developments and subsequently support in preventing disruptions in the supply chain. We have identified the following developments within the PVC industry over the last two years:

• In May 2024, INEOS launched two novel PVC pilot plants at its facility named ‘Jemeppe-sur-Sambre’, located in Belgium, in a bid to fasten its PVC recycling technologies. This move is a part of INEOS’ strategic ‘Project Circle’ proposal, which targets to position an industrialized unit with a recyclable capacity of 40 kiloton (KT) by 2030. The motive behind this strategic initiative is to make all PVC waste recyclable by 2030.

• In May 2024, Westlake launched a distribution center in Florida in a bid to expand its PVC pipe and fittings operations. The distribution center provides improved delivery services for PVC pipe and fittings systems, reinforcing its dedication to customer satisfaction. The distribution facility, with nearly 200,000 square feet of warehouse space for PVC fittings and an additional four acres allocated for pipe storage, triples the storage capacity in the region.

• In May 2024, KEM ONE launched Kemaia as a part of its sustainability initiatives under its PVC segment. Kemaia is a sustainable version of its conventional PVC and chlorine derivatives products that Kem One is typically known to offer. Kemaia bio-attributed PVC is made using a combination of renewable and recycled materials, along with traditional fossil resources. This innovative form of PVC, whether in emulsion, mass, or suspension grades, allows users to embrace a more environmentally friendly approach.