Europe PVC indications for September close to a rollover

Source: ICIS News


LONDON (ICIS)--The European polyvinyl chloride (PVC) market is mostly stable in September with early price indications being close to a rollover, according to sources on Friday.

Several European producers have separately targeted price rollovers for the month, with buyers similarly targeting stable prices or in some cases decreases.

Some early price negotiations have been settled with rollovers, with further deals expected to be settled later in the month.

European export markets for PVC are weak as a result of the currency crisis in Turkey, with prices falling consistently in August and early September. Competitively priced US imports have also lengthened the European market in Q2 and Q3, with US producers generally having a feedstock advantage over European domestic producers as a result of cheaper ethylene prices.

As a result, supply in Europe is regarded as slightly more long than balanced as a whole, although the beginning of Hurricane season in the US may potentially limit this source of availability going forwards.

The NWE contract price for pipe grade was assessed at €1,238-1,275/tonne FD (free delivered) for August, down €5/tonne compared to the previous month.

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