European PVC defies global uptrend
Import PVC prices emerge higher from the US
Production issues in Brazil attracted more PVC cargoes to its domestic market from the US, where supply concerns will already arise as Westlake and Formosa Plastics will conduct planned maintenances at their PVC plants during June-July. Accordingly, feeling free from stock pressure, US PVC suppliers revealed higher PVC offers to Italy .
Europe’s export quotas down
Production issues in Brazil not only diverted PVC cargoes from the US, but also from Europe to Brazil. European PVC suppliers’ quotas to its major export market, Turkey and other export destinations have been consequently trimmed based on their boosted sales to Brazil.
Asian PVC markets driven up on supply issues
Global PVC tightness has supported prices across Asia, defying lower ethylene prices and the softer trend in other polymer markets.
According to traders, a major Taiwanese producer announced its July PVC prices to China and India with increases of $40/ton from June, with other PVC suppliers following suit across the region.
Local PVC market bucks the trend as July expectations remain softer in Europe
Considering ebbing demand ahead of the long summer holidays in Europe as well as lower upstream costs, July expectations are voiced on a softer note despite globally firming PVC trend.
Demand from the construction sector remained below expectations, meanwhile.
Upstream, lower naphtha and spot ethylene prices triggered decrease expectations for July ethylene contracts. According to ChemOrbis Price Wizard, spot ethylene prices fell by around €85/tonon average since the beginning of the month.
A buyer opined, “July ethylene contracts may see drops of up to €80/ton due to upstream losses.”
Meanwhile, players reported that PVC suppliers may not concede to the 50% of the monomer outcome for July given their margin recovery targets.
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