Europe November PVC contract prices down by €20/tonne

23 November 2012 23:59  [Source: ICIS news]

LONDON (ICIS)--November polyvinyl chloride (PVC) contract prices in Europe have fallen by an average of €20/tonne from October because of a fall in the November ethylene feedstock contract price and low downstream demand, market players said on Friday.

This puts the November contract price ranges at €930-980/tonne FD (free delivered) NWE (northwest Europe) and €855-955/tonne FD Mediterranean. 

Decreases of £10/tonne were heard in the UK market, but these were within the existing range of £825-875/tonne, which remained stable.

Some November contract discussions are still ongoing, pending settlement of the December ethylene feedstock contract price.

A fall of €10/tonne was needed to offset the €15/tonne fall in the November ethylene contract price, but buyers pressed for more because of low demand caused by the weakening economy and the approach of year-end. Producers had initially targeted rollovers to improve thin margins.

Some sellers said they had limited falls to €10/tonne. Decreases were heard of up to €30tonne in the Mediterranean and up to €40/tonne in northwest Europe, but reductions as great as this were not widely confirmed.

"Finally, and due to the low demand levels, we [have] been obliged to reduce more than we expected the prices for November," said a producer. "We are decreasing between €10/tonne and, in some very special cases, up to €20/tonne, so the average could be around €15/tonne."

A buyer said demand was slow and that it believes there will be further drops in December.

($1 = €0.78, €1 = £0.81)

By: Glynn Garlick

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