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European PVC market indifferent to global firming trend

  • 08/03/2016 (02:33)
The European PVC market is tracking a stable to slightly softer trend in March, remaining indifferent to the rising trend across other major PVC markets so far due to lower ethylene contracts. However, early talks of a possible upturn in April have surfaced.

A West European producer is giving March PVC offers mainly with rollovers both in the contract and spot markets while conceding to slight discounts of €10/ton in a few cases. A source from the producer reported, “We are mostly seeking to maintain our prices to recover our margins. Buyers are likely to make more purchases this month ahead of possible increases in April. In addition, the PVC market will also receive support from the high season.”

A distributor in Germany is giving stable March offers for West and Central European PVC, stating that he isn’t planning to concede to any discounts citing his limited stocks. In addition, the seller commented that expectations are calling for an upturn for April. “We think that PVC prices have reached the bottom in Europe as prices are rising in Asia, India and Turkey. Offers for US cargoes gained ground. Shin-Etsu will conduct a planned maintenance shutdown in the Netherlands which might affect supply levels in April,” he added. Vinnolit is also expected to shut their PVC plant at Knapsack, Germany for turnaround in April.

In Italy, a distributor concluded some March PVC deals with slight decreases of €5-10/ton from last month, commenting, “We procured less volumes from a Central European producer this month. For April, expectations are firm. Imports are losing their competitiveness due to the global firming trend so more buyers are likely to return to the local market in the days ahead.” Many buyers have already made some purchases with discounts between €5-15/ton from the spot market for March. One of the buyers stated that he is mulling over buying extra volumes in the upcoming days ahead of possible increases in April. He thinks that PVC prices won’t move below the current levels.

A converter in France settled his March PVC contracts with decreases of €10/ton from last month. The buyer also received some import Mexican offers, but didn’t consider them to be competitive as they are standing close to the local market levels.
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