New increases for June on the agenda in Italy’s PVC market
A West European producer concluded some spot PVC deals with increases of €35-40/ton for May. A producer source commented, “Demand was stable compared to last year in the first four months and it’s relatively good nowadays. We were initially aiming for increases of €50/ton, but revised our prices afterwards. For June, we expect to see small increases looking at feedstock costs.”
An agent of a Central European producer concluded some PVC deals up €30/ton from last month in line with his initial May pricing. The seller commented that demand is calm for now and added that he anticipates rollovers for June PVC prices. Another distributor applied increases of €25/ton on his May deals for Central European PVC. “Demand was good in the first half of the month, but it has lost speed recently. We think that suppliers will lift their PVC prices once again in June considering feedstock costs. Plus, import availability isn’t ample,” he commented.
A few compounders made some purchases for May with increases of €20/ton from the spot PVC market and reported that their end product demand is weak. Regarding the June outlook, the buyers expect to see stable PVC prices. A pipe producer stated that he is covered until July after securing some import cargoes this month and said that he expects to see a new round of increases in June, but in small amounts. Another pipe producer bought West European PVC with increases of €40/ton in addition to his purchases from the import market. According to the buyer, the market is calm while the outlook is slightly firmer for June.
In the import market, US k67 was dealt in the range of €820-850/ton DDP, including 6.5% customs duty, 60 days. May offers for US k70 were reported at €850-860/ton with the same terms. Mexican k58 for late June delivery was sold at €830/ton DDP, 60 days.
Upstream, spot ethylene prices have registered a decrease of over €30/ton since the beginning of May despite firmer spot naphtha prices, which rose by $50/ton during the same period due to firming crude oil prices.
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