The PVC market is no longer driven by regional supply/demand and cost factors, but rather by global supply/demand and cost factors. The shift in the global balance of trade has resulted from:

1. China’s increasingly supplying its own PVC demand through domestic production;
2. Strong growth in demand worldwide (5%/yr, 2007 to 2012), especially in developing countries, which do not have sufficient capacity to meet their needs;
3. North America’s regaining an advantaged cost position versus other world regions (except for the Middle East).

Finally, PVC prices have increased as a result of a fundamental shift (increase) in raw-material costs. Even though PVC pricing will be higher in the future, it will remain a leading product in infrastructure building.