INEOS ChlorVinyls raises PVC prices by €100/tonne

LONDON (ICIS)--INEOS ChlorVinyls has increased the price of suspension polyvinyl chloride (PVC) grades by €100/tonne with immediate effect and as contracts allow, a source at the chlor-alkali producer said on Wednesday.

Most European PVC producers aim to at least pass on the full cost of ethylene contract prices, which increased by €40/tonne ($52/tonne) to €1,120/tonne FD NWE in January, and are likely to increase further in February.

Producers say hikes in PVC prices are essential in order to recover the margins lost since the destocking cycle which started at the beginning of the second half of 2011.

However, despite "better-than-expected" demand in northwest Europe, January contract price negotiations are pointing to increases which fall short of the hikes announced by some producers at the beginning of the month. 

INEOS ChlorVinyls is one of the major chlor-alkali producers in Europe, a global leader in chlorine derivatives and Europe's largest PVC manufacturer.