Will Germany’s PVC market change direction in August?
A West European PVC producer closed their July gentlemen’s agreements with rollovers to slight increases from last month. A producer source commented, “We have just lifted our force majeure, but our PVC availability is still tight as we have depleted our stocks.” The producer’s deal levels are at €1015-1030/ton for specialty grades and at €985-1020/ton for k67 FD Germany, 30 days deferred payment.
A distributor concluded some spot PVC deals with rollovers from June at €1000-1040/ton for k70, k58 and k64 and at €1000-1020/ton for k67 on an FD, 30 days deferred payment basis. The distributor reported seeing stable demand and added that he projects a downward trend for August considering lower feedstock costs.
A compounder settled his July PVC contracts with rollovers from June at €960-970/ton FD, 15 days deferred payment for specialty grades and at €950-960/ton for k67. “We expect some decreases to pass in August as feedstock costs moved lower. In addition, trading activities usually slow down in South Europe during this period. We also expect PVC supply to improve now that crackers have resumed operations.”
Another compounder is also negotiating to settle his July PVC contracts with rollovers, but does not exclude the possibility of slight discounts towards the end of the month. Regarding August, the buyer thinks that ethylene contracts might settle with decreases between €50/ton and €100/ton.
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