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European PVC sellers in quest for hikes in April despite stable ethylene

by ChemOrbis Editorial Team -
  • 07/04/2017 (13:08)
European PVC sellers approached the market with increases despite the rollovers in the April ethylene contracts to recover their margins, taking support from their limited supplies. Accordingly, a few April deals were concluded with increases between €20-30/ton, although some buyers refrain from new purchases in an attempt not to pay the hike requests.

Initial hike attempts from Central European producers were heard as high as €40-50/ton amid ongoing supply constraints. “We attribute price increases to the tight supplies rather than good demand,” noted a buyer.

A West European producer is seeking €40/ton increases for April. A company source commented, “We aim to achieve €70/ton increases in March and April. Therefore, we will apply increases for this month accordingly. Our supply is not ample while we also need to recover our margins.”

A distributor of a Central European source said, “We started to offer with €30/ton increases as our supplier’s availability is not ample; however, demand is not so bright. Some buyers are trying to use their existing stocks. We will remain firm on our offers in the first part of the month and afterwards we will decide whether to apply discounts or not.”

Some buyers, who are not in urgent needs of material, are willing to pay rollovers to slight increases amidst slow demand. Plus, April will be a short month in terms of working days due to Easter holidays as most players will be out of the market next week.

In Italy, a compounder who received offers from different European origins with €20-40/ton increases reported that he expects to pay €15-20/ton increases by the end of the month as supply is limited for some origins.

A buyer from Belgium stated, “We are yet to inquire the market, but still we hope to pay €15/ton increases at maximum by the end of the month. Demand is in line with limited supplies even if import materials are re-emerging in the market. Therefore, there will be more supplies in May, which makes us think that this is the last month of increases for PVC.”

Players reminded that spot k-67 prices have recently hit a 20-month-high in Europe. Spot prices are reported at €950-1050/ton for k-67 and at €960-1070/ton for specialty grades so far on FD Italy, 60 days.
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