European Kem One to apply energy surcharge on PVC prices from Oct

According to a source from the company, European Kem One will implement a specific monthly energy surcharge of €110/ton on its PVC prices to tackle rising costs as of October 1st. This surcharge will be applied in addition to the normal pricing evolution of PVC and will be revised on a monthly basis according to the evolution of energy prices.

The producer’s decision came after European markets were shaken by surging electricity and gas prices in September. This in turn affected production margins in energy-intensive industries, including PVC.

The producer source noted, “The first 8 months of 2021 saw a steady increase in energy costs, but the surge in September has been unprecedented in its magnitude and quickness and will have by far exceeded the anticipated evolution of the price of caustic soda and PVC, thus leading to a significant erosion of margins.”