US PVC exports grew in December 2023, due in large part to India dramatically increasing its intake of US material despite rising logistical challenges to global trade.
US PVC exports in December 2023 totaled 274,188 metric tonnes (t), a 6pc increase from December 2022 and the highest monthly total since March 2023. This yearly increase came as India grew its US imports to 50,168t in December 2023 from 22,197t a year earlier, a 126pc increase.
The growth in demand from India offset weakness in other key markets for the US. Just six countries accounted for roughly 50pc of all US exports in December 2022. Of those countries, only India and Brazil increased imports of US PVC a year later, with Brazil's imports growing 18pc to 15,672t.
It was the second straight month India was the largest importer of US PVC. However, the gap between Indian demand and the rest of the world was widening at the end of the past year. India's December 2023 volume was nearly double Canada's imports, the country with the second highest imports of US PVC.
Despite growing security concerns in the Red Sea and the ongoing low water levels in the Panama Canal, which were both becoming more acute in December, US outflows to India have not been deterred. The growing reliance on exporting to India, in the midst of increasingly challenged logistical costs, also reflects market weakness in more accessible markets for US exporters. PVC demand in Europe, the Mediterranean, and North America has been softening while demand in Latin America is improving, but only at comparatively modest volume levels.
