Skip to content

Filter Options
Text :
Search Criteria :
Territory/Country :
Product Group/Product :
News Type :
My Favorites:
 

July PVC deals ongoing in Europe, players discuss August outlook

  • 12/07/2016 (03:29)
The European PVC market is tracking a stable to slightly firmer trend this week. Some sellers elected to reflect either half or the entire increase of €10/ton in ethylene contracts to their PVC prices whereas buyers are seeking to close their deals mostly at stable levels from last month. As the July business is ongoing, players started to voice their early expectations for August.

West European producers announced increases of €10-15/ton on their July PVC prices last week. The producers stated that demand was weak in June, adding that they don’t expect to see any major improvement in buying interest this month as well. A South European producer sold most of their spot PVC allocation with slight increases of €5/ton from June at the beginning of this week. A producer source commented, “Demand is normal so far and our customers are purchasing their regular volumes. For August, we are anticipating rollovers as trading activities will slow down further due to the summer holidays. We might direct our volumes to the export market where demand is better.”

In Italy, several distributors concluded their July deals with increases of €5/ton for Central European and €10/ton for West European PVC. The sellers commented that buyers are cautious with their purchases as they are seeking to reduce their stocks ahead of the summer holidays. Regarding the August outlook, a distributor commented that he is anticipating a stable trend, assuming that reports of a few maintenance shutdowns in Europe might help the PVC market maintain its levels.

A compounder made some purchases with rollovers to increases of €10/ton from his regular suppliers and stated that his end product demand is stable. The buyer thinks that PVC prices might remain steady in August depending on feedstock costs. A pipe producer elected to purchase import cargoes, finding them to be more competitive compared to local material. “Our end product demand was quite weak in June and it still hasn’t improved. We expect PVC prices to lose ground as soon as the market lacks support from costs,” he noted.

Rollovers to minor increases of €5/ton are passing on spot PVC deals in West Europe. Some distributors stated that they expect PVC prices to remain mostly steady in August, assuming that a reversal in trend is unlikely for the short term.

For July PVC contracts, a converter in France closed his deals with rollovers from June with different European suppliers. Some other buyers in Germany and the Netherlands received July offers with increases of €5-10/ton, but they expect to pay stable prices from June after negotiating. Although sellers think that PVC prices will hover at around the current levels next month, expectations are calling for a change in trend on the buyers’ side.
Free Trial