Europe PVC spot values slip further on US imports

09 October 2009 17:56  [Source: ICIS news]

LONDON (ICIS news)--European polyvinyl chloride (PVC) spot prices slipped a further €50/tonne ($74/tonne), as domestic sellers struggled to remain competitive against the influx of US imports entering the market, sources confirmed on Friday.

Spot offers fell €50/tonne on the high end of business, leaving the range at €750-800/tonne free delivered (FD) northwest Europe (NWE), reflecting US imported offers at €750/tonne FD, and domestic offers at €800/tonne FD, according to global chemical market intelligence service ICIS pricing.

However, there was little buying interest at such levels, traders said, as consumers preferred to wait on the sidelines, anticipating even lower offers towards the end of the month as upstream ethylene prices were expected to soften further in November.

This trend was also apparent in the Turkish market, where offers from northwest Europe softened $70/tonne, sources in the region said on Friday.

This left prices pegged at $990-1,000/tonne FOB (free on board) NWE export.

A local trader said that Asian material was offered around $875/tonne CFR (cost and freight) plus 6.5% duty, while US offers were pegged at $930/tonne CFR plus 6.5% duty, meaning European offers were still unworkable despite the decrease.

($1 = €0.68)

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By: Stephanie Wilson
+44 20 8652 3214

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