24 May 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European polyvinyl chloride (PVC) contract prices for May have fallen by an average of €40/tonne ($52/tonne) from April, players said on Friday.
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Prices are now at €915-965/tonne FD (free delivered) NWE (northwest Europe), €850-950/tonne FD Med (Mediterranean), and £805-855/tonne FD
Sellers targeted further margin improvement in May, and decreases as low as €20/tonne were heard in a few cases.
Buyers said producers had already achieved margin improvement in 2013, and they had resisted giving much more. Ethylene pass-through decreases of €50/tonne were heard in a few cases.
One producer said it had insisted on decreases no higher than €30/tonne. A buyer said it had achieved decreases of €40-45/tonne as producers had taken the volumes they needed to move into account, not just price, when negotiating contracts.
Demand was said to have improved from April. A second producer said that improved demand might allow sellers to achieve greater margin improvement in June if the monthly ethylene contract did not move by much.
($1 = €0.77, €1 = £0.86)
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