Higher ethylene scraps softer expectations in European PVC market
West European producers aim to achieve the half cost of ethylene contracts whereas buyers take a waiting stance, assuming that suppliers will have to step back from initial hike requests amid destocking concerns. Moreover, some of the European sellers have already rolled over their prices or applied smaller hikes compared to November considering that they will be able to close deals only in the first half of December.
A West European supplier offering with €15/ton increases said, “We aim to recover our margins and we are not willing to step back for now despite buyers’ resistance. Yet, we will see the reaction of the market.”
A PVC compounder in Italy said, “We have purchased some material with rollovers in December. European suppliers, who are asking for hikes, will concede to some discounts later in the month and close deals with rollovers to slight increases of €5/ton as demand is thin and there are year-end destocking activities in place.”
Converters are almost sure that they will be successful in obtaining rollovers this month considering the nature of December; however, they expect some hike attempts in January due to the producers’ will to recoup their margins.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- ABS reverses losses after 8 weeks in Asia; will upturn be sustainable?
- Import delays support European PP suppliers in July
- Asian PET markets in limbo between high costs and tepid demand
- India PVC sentiment improves further despite lower Aug offers from Taiwan
- Asian ethylene, propylene prices remain bullish but caution lingers
- African PP, PE markets offer mixed bag for July
- European PVC suppliers seek hikes for 14th straight month in July
- Turkey’s PP markets rise around 10% in a month
- India PVC sees first hike attempts after weeks of declines
- Import PE increases lose momentum in China, except for LDPE