European PVC market softens after two-month upturn
On the buyers’ side, however, expectations have already been soft considering weak demand and the approaching year end. A compounder noted, “We expect suppliers to concede to €10-20/ton discounts, now that ethylene settled at a rollover. Furthermore, there are no particular supply concerns.” A bank holiday that took place on November 1 also kept players away from their desks for a while.
Pressure from imports is also increasing. If competitive imports continue to show up, suppliers will need to concede to larger discounts amid comfortable supplies and weak demand.
Last week, US k67 was dealt €85/ton below the low end of the local PVC range in Italy on a delivery and duty paid basis with delivery in January.
In Switzerland, a pipe manufacturer, who aims for paying €10-15/ton decreases, said, “Demand is not in balance with supply. Increased imports are also adding to a well-supplied local market.”
This week, an agent of a Central European supplier has started to offer with slight discounts of €10/ton. He said, “We are offering at rollovers for West European material while we are conceding to slight discounts for Central Eastern European materials. European suppliers face the challenge of poor demand in major export markets as prices have been moving south in Turkey as well. This might lead to higher stocks on the European suppliers’ side.”
This shift in market sentiment has come after two months of price increases in September and October across Europe.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Initial June PE offers to SEA signal firming despite buyers’ resistance
- Firming in ethylene lags behind propylene in Europe
- PET rally stalls in China after prices hit four-and-half-year high
- Asian PS retains firming path on supportive upstream
- June PE outlook under discussion in Europe
- Taiwanese major lowers June PVC offers to Asia despite firm China
- Local PP markets cautiously firmer in Vietnam, Indonesia
- Global ethylene prices continue to defy energy rally
- China’s import polyolefin markets up on soaring crude, futures
- Step-back from initial rollover attempts for ABS in Europe