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European PVC expectations remain firm for June, other global markets soften

by ChemOrbis Editorial Team -
  • 12/05/2016 (18:20)
Players in Europe report that June expectations for the PVC market remain firm even though prices in other major markets such as Asia, Turkey and Egypt are showing signs of softening ahead of the coming month.

A trader based in Western Europe said that PVC deals are settling with €20/ton increases for May while adding that they expect to see €10-20/ton hikes in June. “We expect demand to improve later in the month. On the supply side, we believe that supply may tighten in June as imports from Mexico are likely to slow down while European supplies remain short,” the trader stated. A pipe converter in the Netherlands also stated that they expect to see some price increases in the coming month. “Supply is getting tight, but buyers are still able to find enough material to cover their needs. We believe that prices are likely to firm up next month as we are concerned about a lack of availability for import cargoes.”

While players in Europe continue to expect firmer PVC prices for June, players in nearby Mediterranean markets such as Turkey and Egypt report seeing some softening in prices for US PVC. “Demand is not all that strong these days and American sellers are showing some willingness to step back on their prices to speed up their sales,” a trader based in Egypt reported. A player based in Turkey added, “The market may hold firm for June given supply limitations from both Europe and Asia, but prices may face some downward pressure in the coming month as India will be entering the low season while the upcoming month of Ramadan will also result in slower demand in Turkey and Middle Eastern countries.”

Asian players reported seeing a stable to softer outlook for the month of June. “Buyers are cautious as they anticipate seeing lower June offers from a Taiwanese major as the monsoon season in India will depress demand. Most Chinese sellers are looking to increase their exports these days as export markets offer higher netbacks than the domestic market,” a source from a Chinese acetylene based PVC producer commented. An agent of a Taiwanese major stated, “We believe that our supplier will announce their June prices later in the month. Buyers are generally anticipating softer prices given sufficient availability for acetylene based PVC and slowing demand from India due to the monsoon season.”
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