INEOS ChlorVinyls to review pricing mechanisms for contracted PVC customers

19-Feb-09

In a bid to offset deceptive PVC market reports, INEOS ChlorVinyls has recently announced to review its pricing mechanisms for contracted PVC customers across Europe and to provide contract customers with more accurate and up-to-date information. This move, the company expects, will provide timely and realistic market performance information to customers and 'ensure that prices accurately reflect market trends.' Geir Tuft, PVC Business Manager for INEOS ChlorVinyls comments, "Market reports have become increasingly speculative in recent weeks, which is undermining consumer confidence across the PVC sector. Our own customers are telling us that they find it very difficult to forecast accurately, and to plan their business, when market reports vary so widely." "To illustrate our point, there was a variance of almost €100 on PVC prices quoted across the range of market sources in January alone. We believe there also to be inaccuracies on reported outputs across the sector. Where such sources form the basis of pricing mechanisms, it becomes clear that confusion will arise," Tuft continues. INEOS ChlorVinyls has started the process to review its PVC pricing mechanism with contracted customers on a case-by-case basis, which will continue over the coming weeks.