PVC suppliers in Europe seek hikes beyond ethylene increase for April

Players in Italy and Northwest Europe report that PVC sellers are seeking April increases beyond the €55/ton increase in the ethylene contract, as per ChemOrbis,. Limited availability was cited as the major factor pushing sellers to ask for hikes beyond the monthly monomer increases, with supplies from North America and Central Europe said to be particularly tight. A PVC compounder in Italy concluded April deals for various West European origins with €60-100/ton hikes from March, as they received offers for a Central European origin €135/ton above March. “We sourced from Western Europe as we found offers for these origins to be more competitive than prices for Central European origins. Sellers enjoy a strong hand in negotiations this month as regional supply is tight while there are not many import offers finding their way to Europe. We believe that the market will remain tight until import offers from Mexico and the US re-emerge,” the compounder reported. Another compounder concluded deals for a West European origin with a €95/ton monthly increase while adding that they also received offers with €80-100/ton increases for another West European origin and an offer for a Central European origin with a €150/ton hike. “Demand is OK, but the market is facing significant shortages and our suppliers are not able to sell us the tonnages we want,” the compounder stated. A trader based in Italy said that they raised their offers for Central European origins by €130-170/ton for April. “Our supplier prefers to export to other markets owing to the weaker euro/dollar parity, so they spared only a limited quantity for Italy this month,” the trader reported. A source at a West European producer said that they are seeking €100/ton hikes for April because they need to get a larger increase than the ethylene hike in order to repair their margins. “Supply is regular, but we cannot meet any requests for additional cargoes this month,” stated the source. A source at another West European producer said that they have already sold out their April allocations with €60-80/ton hikes. “We saw good demand for this month and were unable to provide our customers with additional quantities due to supply limitations,” the source reported. In Germany, a converter reported receiving April offers for gentlemens’ agreements with €50-70/ton increases as per ChemOrbis pricing service. “Producers are seeking increases beyond the ethylene contract hike because of limited supply. In addition, many producers are shifting their attention to export markets and are sparing fewer quantities for Europe,” the buyer said. Another German buyer stated that they received €55-80/ton increases for April. “Demand is not that strong, but regional supply tightness combined with a lack of import offers has given sellers a strong hand in their negotiations,” the converter commented.