Firming PVC trend waning after 3 months of gains in Europe
PVC deals are being completed at higher levels for a third consecutive month across Europe. However, players are skeptical about the sustainability of a firming trend for July considering spot ethylene prices, which didn’t register any significant changes during the month.
A West European producer concluded their June PVC deals with increases of €20-30/ton from May both in the contract and spot markets. A producer source commented, “Demand was slower in Italy even though June was a long month in terms of trading activities. In France, the market is gradually recovering following the strikes. The outlook is stable to softer for July since we don’t expect to see an improvement in buying interest given the summer holidays. Ethylene costs are more or less stable.”