Prices will be rising for three reasons. PVC is made of two raw materials in about equal proportions, ethylene and chlorine. They are made into VCM, which is then made into PVC. There was a big fire at a major VCM plant a few months ago, and it will be down at least until the end of April, meaning less product to make PVC
Prices for ethylene have been rising because of planned and unplanned downtime at the plants that make it, and because the major pipeline that brings ethylene from Texas to Louisiana has been down for months and won't be back up until June at the earliest. That means less ethylene to make PVC.
The third reason is tight supply of PVC itself due to planned and unplanned downtime at PVC plants in Texas and Louisiana over the past few months.
So, the basic rules of supply and demand are pushing up prices for PVC, which means the companies that use it to make pipe are also trying to raise their prices. So far they have had limited success because the very cold winter has hampered demand for pipe. They hope that demand will rise as the weather warms across the country in April, allowing them to push their prices up enough to recoup the 9 cents per pound in price increases they have taken in PVC resin so far this year.
I hope that explains it!
Yep - that was what I wanted to know. Supply and demand drives most prices on things but when it's something like a problem at manufacturing plants, that is easier to stomach than just wondering if somebody was getting greedy and just decided to see if people would buy a product at a higher price. We won't be stopping our use of PVC just because of the price - we do so much with it between using it for its intended purpose as well as hoops for my garden beds, and other little projects. Thanks for the info!
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