PVC expectations for Feb steered by upstream markets in Europe
In Europe, January PVC agreements are being wrapped up with rollovers to small discounts following the initial hike requests of some regional sellers. Meanwhile, PVC players from the different parts of Europe including Germany, France, Belgium and Italy have started to pronounce their expectations for February with eyes on the upstream markets, where the outcome of February ethylene contracts are awaited under the shadow of plummeting crude oil and naphtha.
A major West European PVC producer reported having seen good demand and limited supplies and therefore, they concluded their January deals at rollovers. As for next month, a source from the producer said, “Expectations are calling for decreases given the fact that crude oil broke below the $30/bbl level and European naphtha has dipped under a new threshold.”