03 December 2009 11:43 [Source: ICIS news]
LONDON (ICIS news)--INEOS ChlorVinyls is to increase the price of all its European suspension-grade polyvinyl chloride (PVC) by €75/tonne ($114/tonne) over the next two months, a source with the major European PVC producer said on Thursday.
“We are trying to reverse the price trend,” said the source. “We cannot afford to drop the price further or even roll over in December, because the [upstream] naphtha and ethylene costs are just too high.”
Feedstock ethylene had increased by €7/tonne from November to December, and numerous PVC producers had already expressed their discontent with the settlement.
“We expect ethylene to jump significantly in January,” said the INEOS company source.
In a press release on 2 December, INEOS outlined its aims to increase European PVC prices by €25/tonne with immediate effect for December, before targeting a further €50/tonne increase from 1 January 2010.
The statement from INEOS also said that “the January price increase will be further reviewed in line with the development of feedstock prices such as ethylene and chlorine”, and that “any increases not passed on for December will be adjusted for in January pricing”.
European domestic PVC prices had slipped by a total of €55-65/tonne from October due to poor demand and import pressure, ending the five-month bull run that began in May, which saw prices gain €300-310/tonne.
($1 = €0.66)
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