Prices of PVC exports to Turkey lose another $90/tonne

13 March 2009 23:59  [Source: ICIS news]

LONDON (ICIS news)--Spot prices for European polyvinyl chloride (PVC) headed to Turkey settled down $90/tonne (€70/tonne) as a result of aggressive selling from northwest European manufacturers, sources said on Friday.

The range settled at $660-710/tonne FOB (free on board) NWE (northwest Europe) export. Of the $90/tonne drop, $40/tonne of it was freight costs.

Numerous traders’ reports that competitive offers of $700/tonne CFR (cost and freight) from northwest Europe drove down domestic prices. These were undercutting domestic producer Petkim and offers from Asia and Egypt at $780/tonne EXW (ex works), according to global chemical market intelligence service ICIS pricing.

One re-seller believed that prices could even slip below $700/tonne CFR for large consumers in the coming weeks, hindering a price recovery in Turkey.

A northwest European trader expressed concerns that these aggressive offers would also exert downward pressure on the European spot price.

“There have been a few offers into Europe at €500/tonne FD (free delivered) NWE and of £480/tonne FD into the UK for April business, and this could go lower. These are mad numbers,” said the source, before adding “these manufacturers offering such pricing have too much stock and are in desperate need of liquidity.”

(€1 = $0.78)

For more on polyvinyl chloride visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Stephanie Wilson
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly