Europe Jan PVC contracts rise as sellers target improved margins

25 January 2013 23:59  [Source: ICIS news]

LONDON (ICIS)--European polyvinyl chloride (PVC) January contract prices have settled with average increases of €20/tonne ($27/tonne, £17/tonne) in northwest Europe, €25/tonne in the Mediterranean and £15/tonne in the UK, players said on Friday.

This puts January contract prices at €940-990/tonne FD (free delivered) NWE (northwest Europe), €870-970/tonne FD Med and £830-880/tonne FD UK. 

In northwest Europe, increases were generally in the range of €10-30/tonne, while settlements in southern Europe ranged from rollovers to increases of €40/tonne. In the UK, rises were within a range of £10-20/tonne.

One producer said its prices had generally risen by €30/tonne, with some contracts increasing by €40/tonne in southern Europe. A northwest European buyer said achieving a rollover had been "mission impossible" and that its contracts had generally settled at plus €15-20/tonne, and at plus €10/tonne in some cases. Another buyer confirmed rises of €15/tonne.

A producer that mainly sells in the Mediterranean said contracts had risen by €25-30/tonne, while a buyer in Italy said it had seen rollovers to rises of €15/tonne. Buyers in the UK confirmed rises of £10/tonne, while sellers said prices had risen by £15-20/tonne.

Despite a rollover in the January feedstock ethylene contract price, producers had targeted rises to increase weak margins, after price decreases in the fourth quarter of 2012.

($1 = €0.75, €1 = £0.85)

By: Glynn Garlick

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