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...
- PE and PVC imports from US flooding Europe
- Indonesia’s polyolefin markets sustain uptrend
- Asian PVC markets shaken by sharp fall in Taiwanese major’s Apr pricing
- March PE prices take split paths in Africa, Mid-East
- Asian PS markets touch 4-month high amid volatile styrene
- Turkey’s PP market attracts deep-sea origins at 4-month high
- European ABS rebounds from 3-year low
- Firming persists in Vietnam’s PE market, shrugging off ethylene
- European styrene continues to climb up, Asia remains cautiously firm
- PP market up from a year-low in Europe; yet hikes beyond C3 see resistance