01 July 2013 17:29 [Source: ICIS news]
LONDON (ICIS)--Switzerland-based producer INEOS ChlorVinyls is seeking to raise its list prices for polyvinyl chloride (PVC) in July to achieve a total increase of €40/tonne ($52/tonne), which was announced for June but had not been fully implemented, the company said on Monday.
INEOS ChlorVinyls said it had secured around 50% of its target increase in June and would look to recoup the remaining amount in July across its portfolio.
The company’s list price as of 1 July is as follows, as was the case in June - Pipe Grade Suspension PVC delivered in bulk in Europe: €1,035/tonne and Pipe Grade Suspension PVC delivered in bulk in Great Britain: £935/tonne.
Ethylene feedstock and energy costs, some seasonal demand from the downstream construction sector and the underlying need to improve margins are all drivers for the price target, added the company.
Early indications for July PVC business are that other sellers are looking for price increases of €30-50/tonne in a bid to improve margins in view of the stability in the July upstream ethylene contract price.
Buyers said that rollovers to limited increases were the most likely outcome in July as the need to restore PVC margins and some seasonal uptick in demand was being weighed against the ongoing tough economic environment.
“Demand has got busier but is no where near to beforehand [before the economic crisis]. It is busy in relation to the last few months, which have been low,” said one buyer. It added that a compromise of a limited price increase in July may be possible as was the case in June.
PVC contract prices in June were assessed at €915-980/tonne FD (free delivered) NWE (northwest Europe) and €850-965/tonne FD Med.
This reflected a rollover and average increases of €15/tonne. In the UK, prices were quoted at £805-865/tonne FD UK, which represents a rollover to average increase of £10/tonne from May, according to ICIS pricing.
($1 = €0.77)
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