24 June 2011 23:59 [Source: ICIS news]
LONDON (ICIS)--June contract prices for polyvinyl chloride (PVC) settled with a rollover or small decrease of €5/tonne ($7/tonne) month on month in northwest Europe and decreased by €5–20/tonne in southern Europe, buyers and sellers said on Friday.
In the UK, a resounding rollover was reported, with further support seen in this region from the currency movements.
A rollover was reported in many parts of northwest Europe. While there were some reports of decreases of up to €10/tonne from buyers and sellers, most sellers said this level of decrease in the north was exceptional.
However, a fair number of accounts did see some flexibility and shift in prices, and therefore a small consolidation is reflected in the ranges in Belgium, France, Germany and the Netherlands.
These regions have rolled over at the low end and seen a minus €5/tonne reflected at the high end of the reports.
One producer said it had not seen any decrease in northwest Europe, and said there were some instances of a small rise, but this lacked confirmation from the buy side.
In the Mediterranean, a rollover or decrease of up to €20/tonne was reported. This was largely agreed to be a €10-20/tonne drop in Spain and Portugal and a €5-15/tonne decrease in Italy.
Demand in June seemed quite reasonable, but not as robust as some had forecast. This was said to be partly thanks to PVC converters destocking because of expectations of lower prices already in July, thanks to the falling ethylene prices.
European ethylene is soft amid poor demand and lengthening supply. More sizeable cracker reductions look likely. The July contract price should settle next week. Sources expect a reduction but price ideas are ranging from minus €80-120/tonne. Spot pipeline prices have fallen below €900/tonne FD ((free delivered) NWE (northwest Europe) for the first time since April 2010.
($1 = €0.70)For more on PVC visit ICIS chemical intelligence
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