Manufacturers Forecast Moderate Growth in Latin American PVC Market
2026-3-6
Recently, Samir Bharadwaj, CEO of Mexico-based polyvinyl chloride (PVC) producer Orbia, stated during the company¡¯s Q4 earnings conference call that the Latin American PVC market is expected to see moderate growth in 2026. Stronger demand in Brazil will offset continued weakness in the Mexican market.
Bharadwaj noted that Mexico¡¯s construction and infrastructure sectors ¡ª the largest downstream demand areas for PVC ¡ª remain under pressure. Overall, the global market environment remains challenging, particularly for construction and infrastructure-related sectors, and the Mexican market is no exception. Orbia expects Mexico¡¯s PVC market to gradually recover in 2026 as interest rates decline and infrastructure projects resume.
James Patrick Kelly, Orbia¡¯s Executive Vice President and CFO, said Brazil has emerged as a bright spot due to its construction-oriented market structure, effectively countering softness in Mexico and Western Europe. Trade protection measures will also provide important support for the company¡¯s Americas polymer business, especially the anti-dumping duties already in place in Mexico and those soon to be implemented in Brazil.
Orbia expects the global PVC market to remain in oversupply, yet prices may stay elevated. ¡°Recent policy shifts by governments worldwide, particularly capacity optimization, will help support stronger global PVC prices,¡± Bharadwaj noted.
Bharadwaj noted that Mexico¡¯s construction and infrastructure sectors ¡ª the largest downstream demand areas for PVC ¡ª remain under pressure. Overall, the global market environment remains challenging, particularly for construction and infrastructure-related sectors, and the Mexican market is no exception. Orbia expects Mexico¡¯s PVC market to gradually recover in 2026 as interest rates decline and infrastructure projects resume.
James Patrick Kelly, Orbia¡¯s Executive Vice President and CFO, said Brazil has emerged as a bright spot due to its construction-oriented market structure, effectively countering softness in Mexico and Western Europe. Trade protection measures will also provide important support for the company¡¯s Americas polymer business, especially the anti-dumping duties already in place in Mexico and those soon to be implemented in Brazil.
Orbia expects the global PVC market to remain in oversupply, yet prices may stay elevated. ¡°Recent policy shifts by governments worldwide, particularly capacity optimization, will help support stronger global PVC prices,¡± Bharadwaj noted.