West European PVC producers aim for small increases
A West European producer announced increases of €15-20/ton on their October PVC prices, seeking to recover their margins. A producer source commented, “Demand was in line with this period of the year in September. For October, we’ll see how the market will react to these increases. However, we think that buyers might purchase more volumes this month following the OPEC meeting, which might lead to further gains in prices in the last quarter of the year.”
Another West European producer elected to apply smaller increases of €5/ton on their October PVC offers. A source from the producer stated that they have received a positive feedback from their customers so far and added that demand is strong for now.
A distributor in Switzerland started giving October PVC offers with increases of €15/ton as his supplier is seeking to reflect the entire ethylene hike to their prices. “The overall demand is good, though it’s a bit slow from the pipe sector. We are yet to receive feedback from our customers. In addition, players in Germany were away from the market on October 3 due to a national holiday,” he noted.
In Italy, distributors of Central European producers either rolled over their PVC prices from September or applied small increases of €5/ton. The sellers stated that one of their suppliers’ prices were a bit too high so they elected to leave their offers unchanged from September. The most recent spot PVC prices are quoted at €850-950/ton for k67 and at €865-980/ton for specialty grades FD Italy, 60 days deferred payment.
Some buyers received initial October PVC offers with rollovers to increases of €20/ton from September. However, a few of them commented that they don’t consider these hike attempts to be justified and added that they expect to close their deals at stable levels.
A pipe and profile manufacturer in France has already settled his October PVC contracts with rollovers to increases of €5/ton from September. The buyer commented, “Our suppliers were initially aiming for increases of around €7/ton in line with half of the ethylene hike, but we didn’t face any difficulties in negotiating as demand is rather calm for now. PVC supply is comfortable.”
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