Nov c2 settled lower, players sidelined ahead of fresh PVC offers in Europe
Nov. 02, 2018
In Northwest Europe, activities have notably slowed down in the PVC market this week, after most of the October business has been wrapped up with rollovers or small decreases passed only on a few deals. Prior to November ethylene contract settled 10/ton as of today, voices about a possible stable to slightly softer outcome for the November ethylene contracts had gained prominence among market participants.
As for k67-68, the GA net price range is at 890-1030/ton. For specialty grades, the GA net price range is at 895-1040/ton FD, 15/20 days. Meanwhile, spot PVC prices are at 905-1000/ton for k67-68 and at 910-1010/ton for specialty grades, FD, 30/60 days.
Sellers reported mainly rollovers in their October PVC prices, except for a few deals concluded 5-10/ton lower. A major West European producer said, “We settled our PVC negotiations at stable prices as thin demand counterbalanced our tight supply. Meanwhile, our PVC unit in Berre, France has been restarted recently, following a long maintenance shutdown while we have not lifted the force majeure on k70 supplies yet.”
On the buyers’ side, converters took a wait and see stance recently and expressed their expectations to see a stable to slightly softer trend in November PVC prices, sustained by the softer outcome of ethylene contracts. Buyers also reported that PVC supply remains comfortable despite some logistics issues stemming from the low water levels of River Rhine.
PVC producers are now expected to announce their fresh offers for November. Players concur that the lack of bullish factors amidst the recent losses in the energy complex, quiet demand, comfortable supply and lower ethylene contracts may continue to support a steady to softer trend in PVC prices next month.