19 November 2010 23:59 [Source: ICIS news]
LONDON (ICIS)--November polyvinyl chloride (PVC) contract prices in Europe have settled at levels that are steady to slightly softer compared with October, as improving supply undermined efforts to raise prices, market sources said on Friday.
Despite the €28/tonne ($38/tonne) increase in the price of the feedstock ethylene, a number of players acknowledged that PVC pricing ideas had softened over the month, moving from initial targets of plus €30-50/tonne to €15-20/tonne, as a number of production constraints were resolved and demand began to erode ahead of the end of the year.
“We had hoped to get at least €15/tonne in November in order to recover the ethylene, but it proved difficult from the middle of the month,” said one large producer.
As a result, prices were largely steady at €1,070-1,090/tonne FD (free delivered) in much of northwest Europe, while values in the Mediterranean remained slightly below these levels, proving some scope to increase by €5-10/tonne, based on ICIS assessments.
A number of negotiations were still ongoing, as November was proving to be a difficult month for negotiations, with deals settled on a individual basis in many cases.
A number of producers said that much depended on buyer size, location and the starting point of pricing discussions, and that some early settlers had been faced with hikes of €10-20/tonne given the tightness earlier in the month.
A large-profile window converter said: “There is more material in the market as the month goes on, and we expect to be able to achieve a rollover. Most of our discussions are still ongoing. ”
($1 = €0.73)
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