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Players evaluating May PVC outlook in Europe

by ChemOrbis Editorial Team -
  • 27/04/2016 (12:04)
In Europe, April PVC deals are being completed with increases reaching up to the €60/ton hike in the ethylene contracts and players are continuing to comment on the May outlook. Expectations are centered on a new round of increases for the approaching month while many players are arguing that the upward trend might lose steam depending on the movements in upstream markets.

A West European producer concluded their April PVC deals up €60/ton from last month. A producer source said, “Demand has been quite good . For May, we expect to see a new round of increases and we might reflect the entire possible ethylene hike to our PVC prices again.”

Another West European producer sold their April allocation up €50-60/ton from last month. A source from the producer reported, “Demand has been quite good in France and Germany while it was rather slower in Italy. Ethylene contracts might settle with increases of €30-50/ton for May. Supply might tighten next month due to a maintenance shutdown at another West European producer’s plant.”

Players in Italy are wrapping up their April PVC deals with increases between €40/ton and €55/ton from March at €815-890/ton for k67 and at €830-920/ton for specialty grades FD, 60 days deferred payment. Expectations are calling for further firming for May, with a buyer anticipating increases of €20-40/ton from April.

A converter in the Netherlands settled their April PVC contracts up €40-50/ton from last month in the range of €790-850/ton for West European material on an FD, 30 days deferred payment basis. The buyer said that he is anticipating new increases for May considering higher feedstock costs.

A distributor in Switzerland sold West and Central European PVC with increases of €40-50/ton from last month at €790-840/ton for k67 and at €800-860/ton for specialty grades FD, 60 days. “Supply is a bit tight. European suppliers don’t have enough availability to export for now so prices remain firm. We think that we can keep our prices at high levels in May as well,” he commented.

In Germany, some buyers are negotiating to close their April PVC contracts with increases of €50/ton while reporting that demand is good for their end products. One of the buyers noted, “We expect the upward trend to remain in place until July, but increases might lose pace with respect to this month. European producers aren’t exporting for the time being, which is likely to help them keep their prices at high levels.”
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