Players: Competitive PVC imports to lessen in Europe
Moreover, December ethylene contracts are expected to see a major downward correction in line with lower upstream costs. This, in turn, is likely to render local market more attractive as converters may prefer prompt material over imports in the last month of the year.
Kem One announced its December pricing policy in a press release without waiting for the ethylene settlement. Accordingly, the company aims to reflect only 25% of the ethylene’s outcome onto its December PVC pricing rather than a traditional 50%.
Market participants question whether or not other producers will follow suit next month amid intentions to recover some of their margins lost in the previous months. Curtailed year-end demand is likely to be counterbalanced by reduced PVC supplies across the region, according to them.
Feedstock related issues affected downstream PVC operations due to the low water levels on the Rhine River, which paralyzed barge transportation for some time now. A few players concurred, “Logistics issues might be well extended into 2019 as it might take a few months before the River Rhine levels come back to a normal level following a dry summer.”
The latest spot PVC prices were reported at €910-1010/ton for k67, €940-1050/ton for k70 and €920-1030/ton for specialty grades, FD Italy, 60 days. In Northwest Europe, they were at €900-1010/ton for k67-68 and €905-1020/ton for specialty grades, FD, 30/60 days.
As for imports, Mexican k70 was dealt at €910/ton DDP, 60 days in Italy. In Northwest Europe, Mexican k58 and k67 deals were at a single level of €880/ton DDP, 30/60 days. Mexican k67 was offered at €800/ton on DDP Belgium, 60 days basis.
US k67 was offered in big bags at €830/ton CIF Belgium, 60 days; while US k70 was dealt at €880/ton on DDP Germany, 30 days.
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