European PVC sellers seek hikes after higher C2 settlement
A West European producer issued increases of €15-20/ton on their October PVC prices in order to recover their margins. “We think that buyers might purchase more volumes this month following OPEC’s preliminary consensus on an oil output cut, which might lead to further gains in crude oil prices in the last quarter of the year. We’ll see how the market will react to these increases,” commented the producer source.
Another West European producer, however, applied smaller increases of €5/ton on their October PVC offers. A source from the producer stated that they have received positive feedback from their customers so far and added that demand is strong for now.
A source from a different West European producer also commented that they announced a €20/ton increase for October and added, “The market activities were in line with our expectations in September and the market outlook for October seems not so bad. We raised our prices as we aim to recover our margins.”
In Italy, distributors of Central European producers either rolled over their PVC prices from September or applied small increases of €5/ton. The sellers stated that one of their suppliers’ prices were a bit too high so they elected to keep their offers mostly steady from September.
“Following the higher ethylene settlements, our supplier may aim for an increase of €10-20/ton on October offers; however prices might be revised during the month though,” commented a trader.
Some buyers received initial October PVC offers with rollovers to increases of €20/ton from September. However, some commented that they consider these hike attempts to be unworkable and they expect to close their deals at stable levels.
A pipe and profile manufacturer in France was reported to have already settled his October PVC contracts with rollovers to increases of €5/ton from September. “Our suppliers were initially aiming for increases of around €7.5/ton in line with half of the ethylene hike, but we didn’t face any difficulties in negotiating as demand is rather calm for now. PVC supply is comfortable.”
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