Better market conditions support mostly PVC trend in Europe

Sept. 13, 2018

In Northwest Europe, mostly rollovers have started to pass on September PVC deals. Players have reported more balanced fundamentals with respect to last week due to a recover in demand and shorter supply on certain grades. Nevertheless, a few PVC suppliers are still seeking small hike targets, pointing to their needs of margin recovery and dwindling supply for some PVC grades following some planned maintenances in the region.

As for k67-68, the GA net price range is at €890-1030/ton. For specialty grades, the GA net price range is at €895-1040/ton, FD, 15/20 days. Meanwhile, spot PVC prices are at €905-1000/ton for k67-68 and at €910-1010/ton for specialty grades, FD, 30/60 days.

While a few sellers are still firm on their small hike targets in the contract market, players reported that spot PVC deals are closing mostly stable compared to August. A South European producer commented, “We have already concluded some September PVC deals with rollovers in the midst of higher buying interest and our adequate supply. Plus, we are receiving extra orders for k70, following the ongoing maintenance shutdown at a West European major’s plant.” Meanwhile, a source at a West European producer reported that they officially announced hike targets of €20/ton for September PVC prices in an attempt to recoup their margins. However, he admitted to be available to revise their current list prices down during negotiations, matching the general PVC market trend.

On the buyers’ side, converters have started to secure their monthly needs. A buyer in Germany said, “We have already settled some of our September PVC deals paying stable to softer prices, with a few European suppliers conceding to small discounts of €5/ton, after we closed our deals with rollovers in August. As for supply, our suppliers have confirmed all our orders so far. We have also received an import offer for US k70 at $870/ton CIF; yet, we may skip purchases in the import market for the moment given our softer expectations for October.”

Looking ahead, more September PVC deals are expected to be closed mostly stable given the better market conditions, while small price decreases of €5/ton are still considered to be workable on a few deals.