21 September 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--September contract price negotiations in the European polyvinyl chloride (PVC) market have settled with an increase of €75/tonne - £60/tonne in the UK - from August on higher upstream costs and low margins, producers and buyers said on Friday.
A €63/tonne increase was needed to fully offset the additional cost of the ethylene contract price in September, which went up by €125/tonne from August, but producers indicated that a larger increase was needed to compensate for low margins.
Most producers reported business concluded at an increase of €75-85/tonne, while buyers’ price ideas were at around €65-75/tonne. Some producers reported greater increases, but there was no sufficient buy-side confirmation to substantiate this.
Demand has weakened since mid-September, as downstream players have replenished inventories after the summer holiday break, and remain cautious about upstream price developments for October.
($1 = €0.77)
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