Why Is PVC So Expensive?

PVC raw materials are used to make PVC products such as crafts, shoes, gaskets, bottles, medical tubing, etc. PVC raw materials usually come in granular form and can be purchased from PVC raw material suppliers. PVC raw material prices play a major role in the overall cost of the final product.

Like any other type of product or material, the cost of PVC raw materials fluctuates from time to time. While it has historically been a stable product in terms of pricing and availability, it is helpful to understand the factors that affect PVC prices, especially given the post-pandemic global environment.

Rising Oil Prices

The cost of oil (and therefore fuel) seems to be constantly rising, especially recently, due to various eco-political factors. The rising cost of fuel makes it more expensive to transport products, which essentially drives up the price of all products, including PVC raw materials.

Supply Chain Challenges

If a supplier of a certain material experiences shortages or other issues in the market, it may result in PVC raw material manufacturers having to use other, potentially more expensive suppliers. In recent years, there have been other challenges, such as not having enough ships to meet global import and export needs. The shortage of ships on the water, as well as other Covid-19 protocols, makes shipping costs very unpredictable.

Quality

Different PVC raw material suppliers will offer different prices for their PVC compounds, and this price difference can be due to quality differences. While this is not always the case, it can generally be expected that if you pay a higher price, you will enjoy a higher quality product.

Demand

Demand affects the prices of all different types of products and services. If the demand for raw materials increases, this in turn will push up the price of PVC granules/pellets, as manufacturers must pass on the price increase downstream, and ultimately consumers will also be affected if the retail price increases.

Types of PVC Raw Materials

There are several different types of PVC raw materials, including flexible injection molding compounds, rigid extrusion compounds, and more. Compounds can also come with a range of different additives and come in different colors.

So why the price of PVC figures is high, it is also closely related to the price of raw materials.