Spot PVC grades hit 3-year low in West Europe

Regional PVC markets have extended their losses into the second month, with December deals being wrapped up with decreases of €15-25/ton. Although moderate drops seen in November and December pushed prices to multi-year lows, recent price levels failed to stir buying interest as the year-end lull has already kicked in.

Prices back to late Nov 2020 levels

Weak market dynamics forced sellers to cut their prices by more than the half of the ethylene drop in some cases despite their razor-thin margins. December drops pushed prices to a 3-year low, according to ChemOrbis Price Index.



All grades, except for K70, broke below the €900/ton FD NWE level on the low ends of the ranges once again, as a side note. Price assessments stood at €880-950/ton for K67-68, €900-970/ton for K70 and at €890-960/ton for k64-65 and K58, all on FD NWE, 60 days deferred payment basis.

Is bottom in sight?

Players rule out wild price swings for the near term. A bearish cocktail of factors weighs on January outlook. In December, buyers refrained from building stocks as January ethylene expectations call for a softer trend. Plus, demand has been lower on the year in 2023 and expectations are not that promising for 2024 either due to the ongoing macroeconomic challenges and the low season. This will keep resin requirements low at the converter level, with no major supply concerns likely to show up early in Q1.

Although buyers hold softer expectations for January in case of a lower ethylene settlement, PVC producers may try to hinder further decreases citing multi-year low prices and their margin recovery attempts.