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Europe’s PVC market set for new hikes on tight supply

by ChemOrbis Editorial Team - content@chemorbis.com
  • 22/02/2017 (11:01)
European PVC players expect another round of increases for March due to tight supplies stemming from planned and unplanned production shutdowns at PVC plants and limited import flows. According to players, supplies from Kem One, Ercros and Anwil are rather limited due to reduced run rates at these producers. Vinnolit and Shin-tech are also preparing for planned maintenance shutdowns in April and May.

Plus, PVC demand is expected to improve in March due to the approaching high season in the construction sector.

A South European producer reported that their supplies are rather limited as they are going to produce their material with 3 reactors until May, which means that they will only have sufficient supply for their regular customer. A source from the producer added, “Overall supplies are limited in the PVC market, and we expect it to persist next month too and push prices further up.”

The March outlook is bullish not only with support from low availability and expectations of better demand but also with support from rising feedstock costs. Expectations are calling for increases in March ethylene contract settlements.

Most players anticipate increases of €30-50/ton in ethylene contracts while a source from a West European producer commented, “As for March, we expect rollovers to slight increases of up to €20/ton on the ethylene contracts. However, PVC prices will increase again by the same extent of the ethylene contract as availability remains tight.”
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