1 Industry Development Trends under Global Inflation
Inflation refers to the rate at which prices rise over a specific period of time. It is a typically broad measure of general price increases or increases in the cost of living in a country. Since the outbreak of the global COVID-19 epidemic in 2020, consumers around the world have faced different challenges and crises. During early lockdowns, consumers around the world faced shortages of goods, particularly food and hygiene products, due to a sudden increase in demand. The following year saw rising prices, logistical challenges and the outbreak of war in Ukraine in early 2022 leading to increased global inflation and cost of living pressures. In 2023, with the interest rate hike policies of many economies, excessive inflation will gradually come down.
Inflation puts pressure on all industries, and the same goes for the PVC Solvent Cement industry. The main raw materials of PVC Solvent Cement include PVC resin and Perchloroethylene, etc. The cost of these raw materials has generally increased. Inflation increases supply chain pressure, and rising prices of raw materials, labor, transportation, etc. increase the production cost of PVC Solvent Cement. Due to the increase in production costs, companies may adjust the price of PVC Solvent Cement products, thereby affecting operating results. However, if the pressure of rising production costs is not transferred to customers, corporate profits will be squeezed. The price of PVC Solvent Cement began to rise, and many consumers reduced their consumption of PVC Solvent Cement. In short, inflation has brought a series of negative impacts to the PVC Solvent Cement industry.
2 SWOT Analysis
Table SWOT Analysis
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Strength |
The growth of the PVC and C-PVC Pipe and Fittings market drives the demand for PVC Solvent Cement, which in turn promotes the growth of the PVC Solvent Cement market. PVC Solvent Cement has several advantages that make it a popular choice for joining PVC pipes and fittings. |
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Weakness |
The use of PVC Solvent Cement will unintentionally release VOC, causing smog and indoor air pollution, which is harmful to the environment. And strict government regulations are also setting limits for VOC content in PVC Solvent Cement. These potential dangers are also one of the limiting factors for the growth of the PVC Solvent Cement market. |
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Opportunity |
More and more manufacturers are beginning to develop and launch environmentally responsible cement, which brings new development opportunities to the PVC Solvent Cement market. Rising infrastructure and construction industry in emerging economies will drive the demand for PVC Solvent Cement. |
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Threat |
The presence of competing products such as CPVC Solvent Cement and transitional Solvent Cement is hindering the growth of the PVC Solvent Cement market. The fierce market competition is a challenge faced by the PVC Solvent Cement market. |
3 Market Drivers
Table Drivers
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Drivers |
Description |
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Increased demand in downstream markets |
Plastic (PVC) pipes offer significant cost savings compared to traditional metal or concrete piping systems because they require less maintenance throughout their service life. Plastic (PVC) pipes are widely used in water supply, sewage and irrigation industries because of their lower cost, ease of installation and corrosion resistance. Because PVC pipes have many advantages, PVC pipes are popular among people. PVC pipes are mainly used in industrial pipes and fittings, water supply, drainage, sewage and other fields. Because CPVC pipes are cheaper, more durable, waterproof and wear-resistant than steel pipes. As a result, CPVC pipes and fittings are rapidly gaining popularity in corrosive and high-temperature applications. PVC Pipe and C-PVC Pipe and Fittings are the downstream application industries of PVC Solvent Cement. Therefore, the growth of the PVC and C-PVC Pipe and Fittings market drives the demand for PVC Solvent Cement, which in turn promotes the growth of the PVC Solvent Cement market. |
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PVC Solvent Cement offers several advantages |
PVC Solvent Cement has several advantages that make it a popular choice for joining PVC pipes and fittings. Some features of PVC Solvent Cement are as follows: Quick effect: PVC Solvent Glue is a fast-acting adhesive that forms a strong bond quickly. It’s very fast and can be set up in minutes, making for a quick installation process. Heat resistance: PVC solvent glue is also heat resistant, making it best suited for use in hot or cold temperatures. It ensures more functionality for applications and installations. Chemical bonding: PVC solvent adhesives work by chemically bonding PVC surfaces together, creating a strong and wear-resistant joint. This chemical bond ensures that the joint will not weaken over time. Waterproof: PVC solvent glue is completely waterproof, which makes it the best choice for pipe applications. PVC Solvent Cement creates a bond that can withstand the pressure of water flow without breaking. The various advantages of PVC Solvent Cement make it favored by the downstream industry market, thereby promoting the development and expansion of the market. |
4 Key Raw Materials and Suppliers
One of the main raw materials of PVC Solvent Cement is PVC resin. The main raw material for manufacturing PVC resin is vinyl chloride monomer (VCM). The manufacturing process of PVC resin mainly converts vinyl chloride monomer into polymer through a polymerization reaction. Polymerization can be carried out in various ways such as solution polymerization, suspension polymerization and emulsion polymerization. The production cost of PVC resin is easily affected by the price of upstream raw materials, which causes the production cost of PVC Solvent Cement to fluctuate and the price of PVC Solvent Cement to be affected. Therefore, PVC Solvent Cement manufacturers should control the price of raw materials. Measures taken by enterprises to reduce raw material costs: The raw material procurement strategy of PVC Solvent Cement manufacturers should have cost reduction as the main goal. First, companies can obtain better purchasing prices and preferential terms by establishing long-term cooperative relationships with suppliers. A long-term and stable cooperative relationship can provide enterprises with certain bargaining rights, thereby reducing the procurement cost of raw materials. Secondly, during the procurement process, companies should also pay attention to the quality and reliability of raw materials. Choosing high-quality raw materials can improve product quality and reliability, reduce failures and scrap rates during the production process, and thereby reduce production costs.
Table Upstream Raw Material Suppliers of PVC Solvent Cement with Contact Information
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Raw Material |
Suppliers |
Contact Information |
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Westlake | Web: www.westlake.com Tel: + 1 713-960-9111 Add: 2801 Post Oak Blvd., Suite 600 Houston, Texas 77056 USA | |
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Chemate Group | Web: www.chemategroup.com Tel: +86 18624832876 Add: NO.80 Puhui Road, Zhengzhou City, Henan Province, China | |
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Taiju Group | Web: www.usig.com Tel: (886-2)-8751-6888 Add: No. 37 ~ 39, Jihu Road, Neihu District, Taipei City 11492 | |
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ICC Chemical Corporation | Web: www.iccchem.com Tel: 212-521-1700 Add: 725 Fifth Avenue 14th Floor New York, NY 10022 | |
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Olin (Dowper) | Web: olin.com Tel: +1.844.238.3445 Add: 190 Carondelet Plaza Suite 1530 Clayton, MO 63105 USA | |
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Befar Group | Web: english.befar.com Tel: 400-869-6888 Add: No. 869, Huanghe 5th Road, Binzhou, Shandong |
5 Major Distributors
The major distributors company in the PVC Solvent Cement market are PIONEER ADHESIVES INC., Ace Hardware, Lowe’s, Home Product Center (Malaysia) Sdn. Bhd, AllHome Corporation, Stine.
Table Major Distributors of PVC Solvent Cement with Contact Information
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Distributors |
Contact Information |
Web: www.pioneer-adhesives.com Email: [email protected] Add: JWS Center 731 Aurora Blvd., Quezon City | |
Web: www.acehardware.com Tel: 1-888-827-4223 Add: 1220 Kensingotn Ct, Oak Brook, IL 60523, US | |
Web: corporate.lowes.com Tel: 1-800-445-6937 Add: Mooresville, N.C. USA | |
Web: www.homepro.com.my Tel: +603-8063 5179 Add: Suite 17.01, 17.05-07, Level 17, Menara Summit, Persiaran Kewajipan, USJ 1, 47600 UEP Subang Jaya, Selangor | |
Tel: +63 966-5631-748 Add: 7th Level AllHome Office, BPO Building VistaMall Las Piñas, CV Starr Ave., Las Piñas City | |
Web: www.stinehome.com Tel: 337-837-1045 Add: 6501 Ambassador Caffery Parkway Broussard, LA 70518 |
6 Customer Analysis
In the global PVC solvent adhesives market, the downstream customer base spans a number of key industries such as construction, infrastructure, water treatment, and agricultural irrigation, with some of the prominent players such as TechnipFMC, Skanska, Larsen & Toubro, STRABAG Group, Bechtel, and China State Construction Company Limited (CSCEC), among others. They place significant demands on the needs and quality standards of PVC solvent adhesives due to their presence in their field of expertise and global business presence. These companies are not only major consumers of the products, but also key drivers of innovation and market development. The growing demand from these downstream customers is expected to create new growth opportunities for the PVC solvent adhesives market as global infrastructure development continues to expand.
Table Major Downstream Buyers of PVC Solvent Cement with Contact Information
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Downstream Buyers |
Contact Information |
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TechnipFMC | Web: www.technipfmc.com Tel: 44 (0) 203 429 3950 Add: One St.Paul’s Churchyard, London EC4M 8AP |
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Skanska | Tel: +46 10 448 00 00 Add: Skanska AB, Warfvinges väg 25, SE-112 74 Stockholm |
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Larsen Boubro | Web: www.larsentoubro.com Tel: el: 91 22 67525656 Add: CIN – L99999MH1946PLC004768, L&T House, N.M. Marg, Ballard Estate, Mumbai, Maharashtra – 40 001 |
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STRABAG Group | Web: www.strabag-international.com Tel: 49 221 824 2602 Add: Siegburger Str. 241 | D-50679 Cologne | Germany |
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Bechtel | Web: www.bechtel.com Tel: 1 571 392 6300 Add: 12011 Sunset Hills Road, Reston, VA, 20190-5918 USA |
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China State Construction | Web: www.cscec.com.cn Tel: 86 (10) 86498114 Add: Building 3, No. 5, Anding Road, Chaoyang District, Beijing, China |
