Why does Orbia's CEO believe PVC prices could stabilize at $800/tonne, and what key condition must hold for this to happen?

Orbia's CEO Sameer Bharadwaj stated that PVC prices could stabilize around $800/tonne over the longer term if crude oil prices settle in the $70–90/barrel range, as this would sustain the structural supply shock driving up costs; he emphasized that the issue is not scarcity but a steepened supply curve caused by disrupted feedstock (especially naphtha) supplies to Asian producers due to the Iran war, and that PVC remains available in adequate quantities globally.

How has the Middle East conflict specifically benefited Orbia’s PVC business compared to its Asian competitors?

The war has severely disrupted naphtha supply from the Middle East to Asian PVC producers—particularly ethylene-based manufacturers in China, Japan, South Korea, and Taiwan—causing them to operate at lower rates; in contrast, Orbia’s US Gulf Coast–based production relies on ethane feedstock, giving it a structural cost advantage and insulating it from those disruptions, making it a 'significant beneficiary' in Q2.

PVC Prices Could Reach $800/Tonne on Sustained Supply Shock – Mexico's Orbia

Apr 29, 2026

Orbia CEO forecasts PVC prices stabilizing around $800/tonne due to Middle East conflict disrupting Asian feedstock supplies. The company anticipates passing cost hikes to customers while leveraging its US Gulf Coast production advantage.

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PVC Prices Could Reach $800/Tonne on Sustained Supply Shock – Mexico's Orbia

PVC Prices Could Reach $800/Tonne on Sustained Supply Shock – Mexico's Orbia

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