19 February 2010 23:59 [Source: ICIS news]
LONDON (ICIS news)--European contracts for February polyvinyl chloride (PVC) have gained just €35-40/tonne as a result of low demand and aggressive selling, despite producers’ aiming to increase prices by €50-75/tonne ($68-103/tonne), market sources said on Friday.
In a movement similar to that seen in the Iberian PVC market at the beginning of the month, a number of manufacturers confirmed they were willing to accept a total increment of €50/tonne across both January and February. January northwest European contracts were settled with marginal increases of €10-15/tonne.
The movement left February contract prices at €965-975/tonne FD (free delivered), according to global chemical market intelligence service ICIS pricing.
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The movement appeared to be more pronounced in the pipe grade (K-67) market, where a number of sources conceded that low demand due to the ongoing adverse weather throughout
A major PVC pipe converter noted: “The weather has cancelled orders and there are low prices for K-67 available from a few producers looking to shift stock.”
However, one or two producers’ resolve to push through increases of at least €50-60/tonne across all grades was as firm as ever.
A major PVC producer was adamant: “We accept €50/tonne and nothing less. There are one or two producers who offer below this level, but the majority say plus €50/tonne.”
At least one PVC profile window producer had conceded: “We do not have much space to negotiate and will probably have to accept plus €50/tonne.”
Meanwhile, a large consumer also said that it would face the full €50/tonne increase as it had achieved a rollover in January.
($1 = €0.73)
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