Competitive US PVC weighs on local market in Europe
However, competitively-priced import offers from the US are weighing down on the European PVC market, where buyers have already started to bid for rollovers amid balanced market conditions. A few buyers argued, “We are almost sure that we will close April deals with rollovers to €5/ton increases.”
A compounder in Italy said, “We are not in a hurry to buy as the pressure from competitive US offers might help us obtain rollovers to only small increases despite European sellers’ initial hike attempts of €10/ton.”
PVC offers from the US have been on a downtrend since around mid-March in some of its export destinations mainly due to poor demand and steep decreases of spot ethylene prices as was previously mentioned in detail in ChemOrbis Daily Headline Plunging ethylene drags US PVC offers lower in Mediterranean markets.
European players converged on the idea that the reason why more competitive US imports made their way to Europe might be stemming from the slack buying interest in Turkey. A major market player reported, “We are seeking small increases of €10/ton, but more US cargoes are emerging at competitive levels in the import market. Sellers might be diverting their unsold quotas to Europe given stronger euro and disappointing demand in Turkey.”
Meanwhile, a few traders drew attention to the rail strike in France, saying, “If the strike continues and escalates in the upcoming weeks, some PVC producer’s raw material supply could be disrupted given logistic problems. This might play a role on their pricing strategies.”
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