Warm winter to sustain better interest in PE and PVC markets in Europe |
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(ICIS) -- A comparatively warm winter is
helping sustain better-than-expected buying interest in the European
polyethylene (PE) pipe-grade resin and polyvinyl chloride (PVC) plastic markets,
industry sources said on Tuesday. In some cases - such as PE pipes - it is
touted to bring forward the beginning of the traditional ‘spring’ buying season.
“Mild winter weather is helping sustain levels of demand,” one PVC producer
said. “We are surprised that there have been so many enquiries,” another
producer added.
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Low inventories after year-end destocking activity and favourable
currency exchange rates are also driving this increase in customer demand,
improving sales volumes and balancing out the PE pipe resin and PVC markets.
Despite a pick-up in trading activity, PVC contract price ideas for
January continue to point in different directions.
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The European January ethylene contract price settled at EUR1,120/tonne
(USD1,418/tonne) FD (free delivered) NWE (northwest Europe) - up by
EUR40/tonne from December. Producers are aiming for hikes of EUR50–60/tonne in
order to offset the higher upstream prices and ease pressure on margins. Buyers,
on the other hand, are pushing for an increase of EUR10–40/tonne instead,
depending on the region.
mrcplast.com
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