22 March 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European polyvinyl chloride (PVC) March contract prices have risen by an average of €25/tonne in northwest Europe and the Mediterranean and by £20/tonne in the UK, players said on Friday.
A €25/tonne increase covers the €50/tonne ($65/tonne) rise in the feedstock ethylene contract price for the month.
Some producers said they had achieved rises greater than €25/tonne, with increases of up to €40/tonne heard, while rises of €15-20/tonne were also heard on the sell side.
Suppliers said rises were necessary because of high energy costs; more expensive production because of lowered operating rates due to the demand situation; and the need to improve margins. One seller said demand is very weak and that this meant it could not achieve increases greater than €25/tonne.
Demand was said to be worse than in March 2012, mainly due to macroeconomic concerns, and partly because of poor weather in Europe and the approach of the Easter holidays.
Buyers said prices had risen by €15-30/tonne, adding that they had resisted greater rises because of the subdued market. In the UK, rises of £15-25/tonne (€18-29/tonne) were heard.
($1 = €0.77, €1 =£0.85)
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