Thin buying cushions impact of PVC shutdowns across Europe
A seller said, “We were able to procure our customers’ requirement despite planned and unplanned outages at our Central European supplier’s upstream/downstream units.”
A converter from Italy reported to have purchased Central European PVC at stable levels. He added, “We expect to close our deals with rollovers for October despite some suppliers’ faint hike attempts.”
A producer source also admitted that October deals might be closed with mostly rollovers as PVC is not following the firmer trend of energy markets and higher ethylene settlement.
A distributor in Switzerland, who sold his quotas with rollovers, noted that the market is balanced between production outages and weak demand. “However, rising crude and naphtha prices might squeeze sellers’ margins going forward if demand shows no rebound. Players widely believe that PVC might continue to follow a mostly steady path for the remainder of the year,” he commented.
As end product demand is slow in certain sectors, buyers are sticking to their hand-to-mouth purchases even though their stocks are low. A major market participant, meanwhile, commented that some buyers pay attention not to be left with high stocks in case prices soften.
Competitive import offers from the US remained as another factor to watch in the coming days as they might magnify the pressure on part of producers and put a cap on some sellers’ attempt to preserve margins.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- PS markets plunge to 3-year low in China, SEA
- Yuan devaluation sends import LLDPE, HDPE back to 10-year low in China
- PET markets hit two-year low in China, SEA
- Naphtha hits lowest of 2 years in Europe, 8 months in Asia; eyes on oil
- Downturn halts in Europe’s PP, PE and PVC markets ahead of holidays
- Turkish PP, PE markets enter Eid holidays on weak note
- Asia’s September PVC outlook takes shape amid dwindling supplies
- China’s import PP market yields to mounting trade war, weak demand
- PP, PE markets remain soft for another month in Egypt, Mid-East ahead of Eid
- PE sentiment shifts on higher ethylene in Europe