Europe April PVC contract prices settle up by €45-60/tonne

20 April 2012 23:59  [Source: ICIS news]

LONDON (ICIS)--April contract price discussions in the European polyvinyl chloride (PVC) market have settled with increases of €45–60/tonne ($59–$79/tonne) FD (free delivered) from March, producers and buyers said on Friday.

In northwest Europe, contract prices have settled with an average increase of €55/tonne to €1,275–1,290/tonne FD NWE (northwest Europe). Most contracts have settled up by €50–60/tonne, although increases as low as €40/tonne and as high as €70/tonne have been confirmed from both producers and buyers.

In the Mediterranean, contract prices have settled with an increase of €45–50/tonne to €1,120–1,220/tonne FD MED. In Spain, prices have settled up by an average of €45/tonne to €1,120–1,130/tonne FD, while in Italy prices have increased by an average of €50/tonne to €1,200–1,220/tonne FD.

In the UK, contract prices have settled with an average increase of £50/tonne (€61/tonne) to £1,150-1,175/tonne. Rises of £40-60/tonne have been confirmed by producers and buyers.

These increases are aimed at passing on the European ethylene contract price rise for April – which was fully confirmed at €1,345/tonne, up by €40/tonne from March on the back of firm naphtha costs – and recovering the margins lost during the destocking cycle in the second half of 2011.

Tightness has eased in the European PVC market since mid-March on higher operating rates and slow Easter holiday demand, but some producers have seen an improvement in downstream demand from mid-April caused by the start of the construction season.

($1 = €0.76, €1 = £0.82)

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By: Abache Abreu
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