Skip to content

Filter Options
Filter Options
Text :
Search Criteria :
Territory/Country :
Product Group/Product :
News Type :
 

European PVC market softens after two-month upturn

  • 07/11/2017 (10:59)
In Europe, early November offers emerged at stable levels compared to October following the stable outcome of ethylene contracts. Some sellers prefer to stand firm on their offers by trying rollovers despite weak sentiment in global PVC markets, claiming that demand is still normal.

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.