Inovyn announces hefty PVC hikes for March
by ChemOrbis Editorial Team - content@chemorbis.com
INOVYN, a joint venture between Ineos Group and Solvay SA, has announced its initial March offers both with increases of up to €100/ton with regards to February even though European players has yet to come to a conclusion regarding March ethylene contracts. The initial settlement with €15/ton hikes is not expected to be followed by the rest of the market due to notable increases in the spot market.
A source from the producer reported, “We announced our new prices in the gross contract market with €80-100/ton increases regardless of the outcome of the ethylene contracts as we were willing to recover our margins. Supply is regular from our side and demand has improved in February due to the limited import volumes. Plus, we are mulling over exporting more material to the other global markets.”
However, this was not welcomed on the buyers’ side and European players are planning to resist the new levels and push for smaller increases for March.
A compounder in Germany who received offers with €80-100/ton increases from the producer in the contract market stated that he expects to pay more modest increases. “However, we will have to pay the entire ethylene increase when it is fully settled as supply is very limited,” said the buyer.
An Italian manufacturer thinks that tightness and lack of imports will continue to give an upper hand to the suppliers in March as well. A manufacturer from Belgium also thinks that all suppliers will ask more than half cost of the ethylene contract hikes for March since supply is tight and demand will improve in line with the high season.
A source from the producer reported, “We announced our new prices in the gross contract market with €80-100/ton increases regardless of the outcome of the ethylene contracts as we were willing to recover our margins. Supply is regular from our side and demand has improved in February due to the limited import volumes. Plus, we are mulling over exporting more material to the other global markets.”
However, this was not welcomed on the buyers’ side and European players are planning to resist the new levels and push for smaller increases for March.
A compounder in Germany who received offers with €80-100/ton increases from the producer in the contract market stated that he expects to pay more modest increases. “However, we will have to pay the entire ethylene increase when it is fully settled as supply is very limited,” said the buyer.
An Italian manufacturer thinks that tightness and lack of imports will continue to give an upper hand to the suppliers in March as well. A manufacturer from Belgium also thinks that all suppliers will ask more than half cost of the ethylene contract hikes for March since supply is tight and demand will improve in line with the high season.
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