US construction spending flat, PVC demand falls in Nov

US construction spending was virtually flat in November compared with the previous month as private and public spending offset one another, according to the US Census Bureau.

US polyvinyl chloride (PVC) contract prices declined by 1¢/lb in November to 57.5¢/lb, according to Argus. Producers faced pressure during the month as the softening US construction sector failed to absorb recent PVC capacity additions that had come on line.

Formosa added an additional 130,000 metric tonnes (t) of PVC capacity to its Baton Rouge, Louisiana, plant in the mid-third quarter. Shintech added 380,000t/yr of nameplate PVC capacity to its Plaquemine, Louisiana, plant in the fourth quarter.

PVC buyers increasingly focused on inventory management in November, further constraining demand. Many buyers and converters wished to avoid being oversupplied as the end of the year approached due to modest demand growth expectations for 2025.

• Private residential spending grew for the second month in a row after a sharp decline in September, but recovery slowed in November.
• Public spending fell for the second-straight month, offsetting minimal gains in private spending.
• Public spending was virtually flat or slightly down from the prior month in various major categories.
• Private manufacturing investment was above 10pc year over year, but sustained monthly growth has stalled.
• A small boost in commercial spending does not reverse year-over-year decline.

By Aaron May