23 December 2011 23:59 [Source: ICIS news]
LONDON (ICIS)--Most polyvinyl chloride (PVC) contracts for December settled down by €20/tonne ($26/tonne), in line with lower downstream demand and negative economic sentiment, market sources said on Friday.
The decrease was despite a rollover announcement made by producers at the beginning of the month.
Contract values are at €1,060-1,075/tonne FD (free delivered) NWE (northwest Europe) and at €925-1,015/tonne FD MED (Mediterranean). Prices in the UK settled at 970-995/tonne FD UK, down by £20/tonne.
A northwest European producer said: “Discussions have now been finalised."
Decreases of up to €25/tonne were heard by some producers and buyers in mainland Europe. However, this did not seem representative of the overall market trend.
Looking ahead, there is little evidence of a prompt recovery in demand in 2012, as growth in the key downstream construction industry, which accounts for more than 50% of PVC consumption, has shown no signs of improvement.
Producers have reduced PVC stocks over the past months by cutting operating rates to just above 70%, but this has not been enough to offset low demand, as stocks remain high and the market is long.
($1 = €0.77)
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