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Europe's PVC producers to announce a rollover for December contracts

December 06/2011

(ICIS) -- European polyvinyl chloride (PVC) producers have announced a rollover in contract prices for December in an effort to recover margins, market sources said on Monday. Margins at the end of the year are poorer than in December 2008, even after the small decrease [by EUR15/tonne] in December ethylene [contract prices], a producer said. "[PVC] prices have decreased steadily from July to December, whereas feedstock prices are much higher than three years ago, "the producer added.

Suppliers are also talking about potential increases in January, after reportedly seeing signs of a recovery in buying interest for January orders. I dont expect a sudden recovery in demand [in January] but inventory management has been very strict, a producer said.

"Producers have kept inventory levels low and recent unplanned shutdowns have limited availability," it added.

The source said that there are more opportunities for exports: We are not at the same level as 2009, when consumption of feedstocks dropped drastically everywhere in the world." Today, the crisis is mainly European, not so much in other regions, the producer added.

Buyers on the other hand seem reluctant to accept a rollover for December and expect some decreases in line with depressed market conditions. They are also sceptical about the ability of the PVC market to absorb any price increases in January.

Tags:PVC, ethylene.
Category:General News
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