Will May PVC hikes receive support from supply in Europe?
A West European producer raised their PVC prices by €60/ton for May after closing their April PVC contracts with increases of €50/ton. A producer source commented, “We are aiming for increases larger than the ethylene hike to recover our margins. Demand is good so far and it’s in balance with supply, though some suppliers experienced production outages. We aren’t planning to step back from our prices during the month.”
A South European producer applied increases of €25-30/ton on their May PVC prices in the spot market. A source from the producer reported, “Demand was good in April and supply is regular while we aren’t under any sales pressure.”
In France, a distributor is giving May offers for Central European PVC up €30/ton from last month. The seller commented that demand is improving from the compound sector while it remains stable in the pipe industry, adding that availability is limited from his supplier. According to him, the outlook is firm for the medium term.
A buyer in Germany has already closed his May PVC contracts with increases of €20/ton in line with half of the ethylene hike and said that he didn’t face any issues regarding supply for now.
In Italy, a distributor lifted his May PVC prices by €30/ton after applying price hikes matching the entire gain in ethylene contracts in April. The seller commented that supply is regular and that he is waiting to receive feedback from buyers.
Some buyers closed their April PVC contracts with increases of €50/ton. A converter expressed his buy ideas for May with increases of €25-30/ton while another buyer commented, “Our suppliers are mulling over reflecting the €40/ton rise in ethylene costs to their PVC prices entirely considering their limited supply. We will make new price inquiries this week.”
Despite reports of limited availability on the part of a few suppliers, some PVC plants have returned to production recently. Vinnolit was expected to restart their 160,000 tons/year PVC plant at Knapsack, Germany on April 29 after maintenance. Ineos reportedly completed a maintenance shutdown at Tavaux, France in the first half of April. The plant has a PVC capacity of 300,000 tons/year. Czech Anwil also resumed operations at Neratovice in the second half of April. However, market sources reported that production at the 135,000 tons/year PVC plant was reduced due to an ethylene shortage.
To keep tabs on the most recent updates in global PVC production, please see PVC Production News (For members only)
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Styrene prices sink to multi-month lows in Asia and Europe
- European PET posts double-digit decreases for October
- PVC downturn gains pace in Asia on Taiwanese major’s larger-than expected drop
- Asian spot propylene regains premium over ethylene for first time since 2013
- Import LDPE, LLDPE prices almost back at par with ethylene in China
- Turkish players voice early PP, PE expectations for November
- Thin buying cushions impact of PVC shutdowns across Europe
- China’s PP market makes a strong start to post-holiday period
- Asian ethylene-naphtha spread narrows to 3-year low
- Local PVC markets plunge in India, Southeast Asia