28 June 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European June polyvinyl chloride (PVC) contracts have settled between a rollover and an increase of €25/tonne ($32/tonne) over May, tracking the upward movement of the June ethylene contract price, market participants said on Friday.
The European ethylene contract price rose by €5/tonne in June to €1,170/tonne. PVC producers said they are intent on restoring margins.
PVC prices for June are now at €915-980/tonne FD (free delivered) NWE (northwest Europe), €850-965/tonne FD Med (Mediterranean), and £805-865/tonne FD UK.
Some PVC producers in Europe have said that they intend to seek an increase of €30-50/tonne for July business in a bid to improve margins.
Negotiations have begun with at least one consumer already agreeing to a rollover for July business.
Other PVC end-users said they expect to agree to a small increase but negotiations are ongoing.
In Spain and Portugal, demand is said to be steady with spot prices at the lower end of the ICIS spot range. Latin American suppliers are seeking a price increase of €30/tonne into southern Europe for July business, market players said.
Demand is expected to be steady in July as customers try to secure purchases ahead of the summer holiday break. Some PVC end-users said that their requirements in July may be less as they carry out planned shutdowns at their factories.
Demand from the construction industry has been good in June as weather conditions have become favourable. A number of PVC buyers, however, are still hesitant to build stock.
($1 = €0.77)
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