Polyvinyl chloride (PVC) prices journey southward in Europe

This week, PVC prices declined in the European region.

A European industry source informed a Polymerupdate team member on conditions of anonymity, “PVC prices in Europe were pressured lower owing to a cargo oversupply situation and subdued demand conditions. Bearish upstream ethylene, EDC and VCM values further exerted a bearish pressure on prices. Meanwhile, it is estimated that upstream chlorine producers are aiming to correct the PVC supply overhang and also bring excess caustic soda supplies under control by curtailing chlorine production.”

The source added, “The market momentum in Europe is expected to further decelerate going ahead, as a majority of market players shift attention to offloading inventories and scaling back production activity during the summer holiday season. The bearish pressure on prices was also the result of slowing activity across derivative industries like construction, automotive and packaging. Lower import offers from overseas suppliers also triggered a downtrend in prices.”

In the spot markets, FD North West Europe PVC prices were assessed at the Euro 915-925/mt levels, a fall of Euro (-20/mt) from the previous week.

In the contract markets, PVC suspension grade prices were assessed at the Euro 1300-1305/mt FD NWE Germany and FD NWE France levels, both decreased by Euro (-25/mt) week on week. PVC suspension grade prices were assessed at the Euro 1310-1315/mt FD NWE Italy levels, a drop of Euro (-25/mt) from last week. Meanwhile, PVC prices were assessed at the GBP 1110-1115/mt FD NWE UK levels, a week on week fall of GBP (-20/mt).

Ethylene spot prices on Thursday were assessed at the Euro 555-565/mt FD North West Europe levels, a sharp week on week drop of Euro (-55/mt).

Feedstock ethylene contract price for July 2023 settled at the Euro 1120/MT FD North West Europe levels. This price represents a fall of Euro 40/MT from its June 2023 settlement levels.

Meanwhile, feedstock EDC prices were assessed at the USD 295-305/mt FOB North West Europe levels and VCM prices were assessed at the USD 705-715/mt FOB North West Europe levels, both lower week on week by USD (-20/mt).