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PVC dealt higher despite flat C2 in Europe

by ChemOrbis Editorial Team -
  • 08/09/2020 (13:36)
September PVC prices were revealed with increases of up to €60/ton in Europe.

Meanwhile, increases of €40-50/ton have already started to pass on spot PVC deals, defying the stable ethylene settlement. Suppliers in the distribution channel have already closed their deals higher amid restricted availability and mostly healthy demand.

PVC prices for most grades in Italy breached the €800/ton level on local terms, as players put it.

Stock levels on the producers’ side are extremely low due to a spate of ongoing/upcoming turnarounds or unforeseeable production hiccups. Boosted sales both in the local and export markets coinciding with the regional production outages and lower import volumes reduced overall PVC availability in the region.

A distributor reported, “Supply is tight amid Inovyn’s force majeure and a lack of US material. Kem One also has limited availability following a turnaround back in August.”

Meanwhile, a buyer reported that one of their suppliers put them on allocation as they will conduct a planned maintenance.

Sellers reported to have received a good number of orders due to pent-up demand after holidays as buyers are involved in purchases to meet their monthly requirements.

PVC producers have been recovering their margins more efficiently than other polymer producers, supported by supply tightness and robust activities in the construction sector.

Meanwhile, a formula based contract deal was closed with rollovers in line with the ethylene’s outcome. Still, PVC prices are likely to remain supported unless availability improves anytime soon.
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