Europe’s PVC under siege: Italy hits lowest level since 2020

European PVC markets wrapped up September on a largely steady note, with prices posting rollovers or slight reductions for large-volume deals. Despite limited production rates and stable feedstock costs, market fundamentals remained soft, weighed down by persistent import competition and sluggish downstream demand. As October kicks off, stability is again seen as the most likely scenario, with little room for either gains or major losses.

Sellers defend margins, but buyers resist amid ample supply

Most regional suppliers approached September with stable to slightly lower offers, particularly for large-volume transactions. A few producers even offered extra spot material at large discounts compared to gross contract levels in a bid to stimulate buying interest. However, these efforts largely failed to revive demand, as converters refrained from restocking and kept operations limited to short-term needs.

“Buyers were in no mood to build stocks ahead of year-end,” a trader commented. “Most converters either delayed purchases or requested longer payment terms due to tighter cash flow.”

Despite ongoing and upcoming output disruptions, the market faced no delivery issues and maintained sufficient inventories. A number of producers that traditionally export part of their output also brought extra spot volumes to the market, further contributing to the balanced-to-long supply picture.

PVC grades on FD Italy basis lowest in 5 years

Prices both in Italy and West Europe have been on a mostly downward trajectory despite producers’ margin recovery efforts since late Q1 2025, ChemOrbis data revealed.



All PVC grades on an FD Italy basis have hit their lowest levels since late October 2020 — a five-year low — as prolonged demand weakness and aggressive import pressure continued to weigh on prices. Italy’s smaller market size and higher transport costs to the south, however, kept local prices trading at a premium over West European spot levels. In contrast, ample regional supply and subdued offtake pushed West European PVC prices to their lowest levels since June 2024 on a weekly average.

Demand weaker than expected, no sign of recovery in Q4

Market participants broadly agreed that September demand was well below expectations. Buying interest remained tepid even after the summer lull, and players see little hope for improvement through the fourth quarter due to credit or demand constraints. A few small converters said their profit margins were squeezed further, prompting them to ask for deferred payments, while others noted that order entries in construction-related segments fell compared to the pre-holiday period.

Indeed, Eurozone construction activity accelerated its decline in September, with the HCOB Eurozone Construction PMI Total Activity Index dropping to 46.0 from 46.7 in August, signaling a broad and intensifying downturn across the sector.

Competition among pipe makers remained fierce amid slow public works and private construction activity, leaving most downstream players focused on cost containment rather than volume growth.

“Demand was already low in September and will likely worsen in October as many buyers continue to run down inventories before year-end,” a distributor said.

Imports continue to weigh, Asian origins retain edge

Imports from Asia, mainly South Korea and Taiwan, continued to exert strong downward pressure on European PVC prices. Following the imposition of antidumping duties on US and Egyptian PVC, European buyers turned to alternative Asian suppliers such as South Korea and Taiwan, whose competitive prices and absence of trade barriers led to a sharp rise in their exports to the EU, even as total import volumes continued to shrink. In January-July 2025 period, imports from S. Korea and Taiwan respectively surged by around 120% and 85% year on year, according to ChemOrbis Stats Wizard.

Traders reported South Korean K67 offers at around €680–700/ton CIF and Chinese origins slightly below that range, with deliveries extending into late November or December. These stood around €120-150/ton below the lowest spot level for European K67. Locally-held South Korean cargoes were offered around €860/ton FD, 60 days, still slightly below European spot levels.

For other PVC grades, the scene was similar. Import cargoes on DDP basis were more than €100/ton below prevailing spot lows.

Asian suppliers were said to be seeking long-term relationships with European buyers, offering flexible payment conditions based on deliveries. Several warehouses across the continent are already storing imported cargoes, ensuring faster access and further intensifying competition with regional suppliers.

Rumors of EU anti-dumping action against Asian PVC

Amid mounting import pressure, multiple sources reported that EU producers are preparing a formal anti-dumping (AD) complaint targeting Asian PVC origins, namely South Korea, China, and Taiwan. Although no official confirmation has yet been made, the rumor reflects growing frustration among European suppliers facing sustained margin erosion.Several producers have already begun adjusting their sales strategies in anticipation of potential trade measures.

October outlook: Stability to persist as costs stay flat

The October ethylene contract settled with rollovers, signaling a flat cost environment for the month. PVC suppliers thus announced stable offers as they attempt to prevent further margin erosion. While a few players do not rule out minor downward corrections, most agree that the scope for additional decreases is limited given already squeezed producer margins.

Market players see no room for an uptrend either, citing lackluster demand and abundant imports. “Even if prices dropped slightly, demand wouldn’t improve,” a buyer commented, pointing to persistently poor consumption and competitive Asian offers.

Both Northwest and Southern European markets are projected to retain a steady tone through October. Regional suppliers will likely prioritize stability ahead of 2026 contract negotiations, during which buyers are expected to push for lower long-term pricing to reflect growing import competition.

Margins remain thin

PVC producers continue to face profitability challenges, with little success in passing through costs amid stiff import pressure. Sources said some suppliers plan to raise operating rates marginally in the coming term to spread fixed costs, though this strategy may further exacerbate oversupply if demand fails to recover.

With import prices hovering well below regional benchmarks and no sign of consumption revival, European PVC producers are entering the final quarter of the year in a defensive stance. Unless costs rise substantially, any meaningful recovery in prices or margins appears unlikely during Q4.