Polyvinyl Chloride (PVC) Procurement Intelligence

In this PVC procurement intelligence report, we have estimated the pricing of the key cost components such as raw materials (e.g., ethylene and chlorine), labor, equipment, energy, packaging, transportation, and others. Other costs include R&D, rent and utilities, compliance, general and administrative, sales and marketing, and taxes.

Suppliers of PVC often use one of many pricing structures. One of the prominent pricing structures used is cost-plus pricing. Key benefits of this pricing model include simplicity of calculation, consistent rate of return, and dependability. Volume-based pricing is commonly used in transactions involving large industrial buyers, such as construction conglomerates, large manufacturers of plastic products, and other bulk consumers of PVC. These buyers often need significant quantities of PVC for projects or production runs. Other key pricing models used in this industry are demand-based pricing and competition-based pricing.

Key factors affecting PVC prices include raw material price fluctuations, supply chain disruptions, labor cost variations, and fluxes in energy costs. For instance, in 2024, the PVC industry in Europe is facing challenges with labor market volatility, which includes a shortage of skilled workers and a rise in labor costs. As companies are offering higher wages to attract and retain workers, it is driving up the overall costs. The prices of crude oil (WTI) increased from 73.9 USD/bbl in January 2024 to 84.6 USD/bbl in April 2024. This directly affected the PVC prices during the same period. For instance, the prices of PVC futures in China grew from 5,520 CNY/ton in January 2024 to 5,756 CNY/ton in April 2024.

Order your copy of the Polyvinyl Chloride (PVC) category procurement intelligence report 2024-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Operational Capabilities - PVC

• Geographical Service Provision - 25%
• Industries Served - 20%
• Years in Service - 15%
• Employee Strength - 15%
• Revenue Generated - 15%
• Regulatory Certifications - 5%
• Key Clientele5%

Functional Capabilities - PVC

• Product Type (Unplasticized/Chlorinated/Molecularly-Oriented/Modified) - 25%
• Product Source (Chemical-based/Bio-based) - 25%
• Delivery Mode (Offline/Online) - 15%
• Customer Service - 15%
• Lead Time - 10%
• Others - 10%

Rate Benchmarking

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.

Salary Benchmarking

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).

List of Key Suppliers

• Arkema S.A.
• Formosa Plastics Corporation
• INEOS AG
• KEM ONE SAS
• LG Chem, Ltd.
• Mitsubishi Chemical Group Corporation
• Occidental Petroleum Corporation
• Shin-Etsu Chemical Co., Ltd.
• Sinochem Holdings Corporation Ltd.
• Solvay S.A.
• Westlake Corporation
• Xinjiang Zhongtai Chemical Co., Ltd.

Browse through Grand View Research’s collection of procurement intelligence studies: 

• Disposable Medical Gloves Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
• Loyalty Programs Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Polyvinyl Chloride (PVC) Procurement Intelligence Report Scope 

Our services include (not limited to): 

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.