PVC rally extends into 17th month in Europe, Oct hikes vary in size

In Europe, PVC suppliers started to reveal their offers for October with increases varying in size. Initial offers indicated increases ranging between €50/ton and €120/ton, while a few regional producers were yet to reveal their pricing policies for October.

Spot PVC prices extended gains into the 17th month on the back of deteriorating supply bottlenecks and strong buying appetite.

Prices surpass previous peaks

Prices set new records both in Italy and Northwest Europe, the weekly average data on ChemOrbis Price Index revealed. In Italy, spot K67-68 prices have been breaking their previous peaks every single month since January 2021, when prices first hit an all-time high. Similarly, prices in Northwest Europe have surpassed previous peaks seen in September.



The weekly average spot price for K67-68 hit €1730/ton FD level in Italy and €1650/ton in Northwest Europe this week, as per data from ChemOrbis.

Pace of gains accelerates

The pace of price gains accelerated when compared to September due to a confluence of bullish factors.

PVC suppliers sought larger increases on their prices despite a small increase in the monthly ethylene settlements. They pointed to the turnarounds, force majeures and a lack of imports adding to the tightness on top of still-robust buying interest. Although low season in certain sectors started to kick in, players have reported no signs of a visible slowdown in overall buying appetite amid tightness. Meanwhile, the building industry continued to support activities in certain segments.

Spot availability remained tight, with buyers lamenting about not being able to find extra quotas.

PVC suppliers raised their October prices by €50-60/ton, while initial deals already started being closed with such increases. The magnitude of October hikes was larger compared to September hikes of €10-40/ton.

What is more, rising energy costs pushed two regional producers to apply 3-digit increases for PVC. Kem One implemented a surcharge of €110/ton on its PVC prices in a bid to reflect rising energy costs. Following suit, a different regional producer applied €120/ton increases on its October PVC prices.

Participants closely monitor whether or not other suppliers will decide to reflect energy costs on resin prices considering low gas stocks in Europe amid reduced imports from the US and Russia.