March PVC deals settling softer in Europe, April increases awaited
A source from a West European producer stated, “We are insisting on rollovers for our March deals in order to defend our margins, even though many buyers are trying to negotiate small decreases. We are seeing good demand for profiles while demand for cables is normal and pipe demand is a bit weak. In general, we believe that supply and demand are mostly balanced in the region. For April, we expect to see some increases in PVC prices based on the likelihood that the April ethylene contract will settle higher.” An agent of a Central European producer reported, “Our March deals have mostly been settled with rollovers. Demand has been steady on the month, but we have noticed that some buyers are starting to build up extra stocks ahead of anticipated increases in April.”
A converter based in France said that they concluded March deals for West European k70 with small decreases from February. “We are seeing steady demand for our end products these days. For April, we believe that prices will witness some upward movements given stronger energy costs,” the buyer commented. A compounder based in Italy said that they have purchased enough material this month to cover their needs until mid-April, adding that they sourced from both West and Central European origins as well as imported American and Egyptian cargoes. “We managed to purchase with small reductions this month while we believe prices will be stable in April. We are seeing normal demand for compounds this month,” the compounder reported.
Another compounder stated, “Our West and Central European suppliers have already conceded to some reductions, but we are still negotiating in hopes of obtaining additional discounts. We believe that prices will move up a bit next month, although the size of any increases will depend on the ethylene settlement.”
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