European PVC market maintains downward note
A West European producer issued decreases of €20-25/ton on their February PVC prices while conceding to slightly larger drops of €30/ton in some cases. The producer’s spot PVC offers to Italy are at €850-865/ton for k67, at €860-880/ton for k58 and k64-65 and at €860-890/ton for k70 on an FD, 90 days deferred payment basis while their gross contract prices are standing at €870-895/ton for k67, at €885-900/ton for k58 and k64-65 and at €880-900/ton for k70 FD France, 90 days.
A producer source commented, “We aren’t planning to reflect half of the ethylene drop to our prices as we couldn’t recover our margins in December and January. Demand is good so far since buyers are holding low stocks. For March, PVC prices might track a stable to firmer trend if crude oil prices remain steady.”
Another West European producer concluded some spot PVC deals with decreases of €30-35/ton for February at €805-830/ton for k67, at €825-850/ton for k58 and k64-65 on an FD Italy, 60 days. A source from the producer reported, “Demand is good for now even though we are seeing competition from import PVC cargoes coming to Europe.”
Some buyers in Germany and the Netherlands stated that they are seeking to obtain decreases of at least €30-35/ton on their February PVC deals after receiving initial offers with slightly smaller drops. One of the buyers commented that PVC prices might stabilize if crude oil prices continue to hover at around the $30/barrel threshold.
Another converter in Germany reported receiving offers for February PVC contracts down €15-20/ton from last month, but said that he is postponing his purchases for now in anticipation of larger reductions. Even though some players started to question the possibility of a stabilization for the following weeks, the buyer thinks that the outlook is bearish considering that crude oil and naphtha prices remain quite weak.
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