A European market source notified a Polymerupdate employee on conditions of privacy, “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 included, “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 area markets, FD North West Europe PVC costs were examined at the Euro 915-925/mt levels, a fall of Euro (-20/mt) from the previous week.
In the agreement markets, PVC suspension grade costs were examined at the Euro 1300-1305/mt FD NWE Germany and FD NWE France levels, both reduced by Euro (-25/mt) week on week. PVC suspension grade costs were examined at the Euro 1310-1315/mt FD NWE Italy levels, a drop of Euro (-25/mt) from recently. Meanwhile, PVC costs were examined at the GBP 1110-1115/mt FD NWE UK levels, a week on week fall of GBP (-20/mt).
Ethylene area costs on Thursday were examined at the Euro 555-565/mt FD North West Europe levels, a sharp week on week drop of Euro (-55/mt).
Feedstock ethylene agreement rate for July 2023 settled at the Euro 1120/MT FD North West Europe levels. This rate represents a fall of Euro 40/MT from its June 2023 settlement levels.
Meanwhile, feedstock EDC costs were examined at the USD 295-305/mt FOB North West Europe levels and VCM costs were examined at the USD 705-715/mt FOB North West Europe levels, both lower week on week by USD (-20/mt).
