Bearish February expectations hamper PVC demand in Italy
Spot PVC prices are at €680-720/ton for k67 and at €690-750/ton for specialty grades FD, 60/90 days. Following the January reductions, prices have reached the lowest levels seen since June 2009.
A West European producer is giving offers for their January gentlemen’s agreements with decreases of €50/ton from last month. A producer source said, “We are planning to reflect less than half of the ethylene drop to our prices in order to recover our margins. Meanwhile, demand is weak since buyers are waiting to see if PVC prices will lose further ground.”
An agent of another West European supplier reported concluding some deals with decreases of €65/ton from last month. According to the distributor, the market is calm as buyers are confident about seeing further decreases in February.
Indeed, buyers remain cautious about their purchases due to bearish expectations stemming from retreating upstream markets, with spot ethylene prices dropping around €70/ton from early January levels to hit the €700/ton threshold on an FD NWE basis.
A compounder reported, “We haven’t made any purchases yet as we think that sellers might concede to discounts larger than €60/ton in the upcoming days. We expect PVC prices to decline further in February in line with decreasing costs.” Another compounder made some purchases €60-65/ton below last month. The buyer said, “Sellers, who initially lowered their prices by €50/ton, conceded to slightly larger discounts of €60/ton this week. We expect the downward trend to remain in place next month.”
In the import market, a converter bought Egyptian k67 at €650/ton CIF, 90 days deferred payment. The buyer thinks that PVC prices might reach the €600/ton threshold in February.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Tightness brings further price hikes in African PP, PE markets
- European PP hits new highs after 3-digit hikes for January
- Turkey’s PP, PE markets open 2021 with supply-driven hikes
- Vietnam’s local homo-PP market retreats for 3rd week on subdued demand
- China’s PE demand wavers amid controls on environmental pollution and electricity use
- January trend takes shape in Egypt’s PP, PE markets
- Stats: Turkey’s 2020 polymer imports set to beat the 2017 record
- China PP, PE markets close 2020 on a soft note; SE Asia feels pressure
- Stats: China’s total PE imports down for 2nd month in November
- Egypt PET markets poised to end the year on a strong note