Polyvinyl chloride (PVC) prices remain steady in Europe

This week, PVC prices rolled over in the European region.An industry source in Europe informed a Polymerupdate team member, "The European polyvinyl chloride market experienced stable pricing, attributed to recent market activity following the announcement of a new monthly contract price for the feedstock ethylene, which decreased by Euro 70/mt for May. Concurrently, weak demand has led regional producers to lower their offer levels, anticipating increased availability in May. Negotiations for May contract prices are ongoing between European PVC producers and buyers. Some producers have initiated discussions by proposing rollovers to buyers, which have largely been rejected, while others are focusing on price reductions in light of the declining feedstock ethylene prices and the need to enhance margins, which are currently deemed unsustainable. Market participants noted that significant progress was made in April to bolster producer margins. Consumers highlighted a notable drop in the ethylene MCP for May, weak structural demand for end products, and competitive pricing from Asia during negotiations. Additionally, some consumers are adopting a wait-and-see approach regarding volume purchases, expecting more favorable offers in May.Demand for s-PVC in the European construction sector, a crucial market, remains subdued. Although there has been a slight easing of contraction month-on-month, the overall outlook remains bleak. Despite early indications of a potential easing in the sector's downturn, construction firms in the euro area continue to express pessimism about the future activity outlook.Supply and demand trends exhibited a mixed pattern, characterized by limited domestic availability due to production halts in the first and second quarters. However, global PVC supply has been increasing, and the pressure from imports is becoming apparent. European spot prices are varied, with Asian offers significantly lower than those of domestic producers, leading to a growing focus on imports from Asia. There is a healthy supply of PVC available for export from China to Europe, despite tariff uncertainties and diminished export opportunities to India. Supply disruptions continue, particularly as a regional producer remains under force majeure for S-PVC at their Tavaux facility in France, while another regional producer is still experiencing shutdowns in PVC production at their Wloclawek site in Poland. In Turkey, demand remains weak due to ongoing challenging macroeconomic and political conditions. Competitive offers are increasingly surfacing from Egypt, South Korea, and the United States, while European producers show limited willingness to match prices from other regions. Global markets have faced disruptions due to new US tariffs and Chinese counter-tariffs on US exports, prompting Asian producers to increasingly target Europe and the Middle East. Although the US arbitrage remains closed due to antidumping duties implemented in mid-2024, the rising availability is starting to impact mutual export markets such as Turkey. Additionally, E-PVC demand is also weak, particularly due to a sluggish automotive sector in Europe, leading to indications of softer contract delta pricing for e-PVC in response to this weak demand."In the spot markets, FD North West Europe PVC prices were assessed at the Euro 895-905/mt levels, flat from last week.In the contract markets, PVC Suspension grade prices were assessed at the Euro 970-975/mt FD NWE Germany and FD NWE France levels, both unchanged from the previous week. PVC Suspension grade prices were assessed at the Euro 980-985/mt FD NWE Italy levels, steady week on week. Meanwhile, PVC prices were assessed at the GBP 815-820/mt FD NWE UK levels, a fall of GBP (-5/mt) from last week. Meanwhile, feedstock EDC prices were assessed at the USD 165-175/mt FOB North West Europe levels while VCM prices were assessed at the USD 505-515/mt FOB North West Europe levels, both falling by USD (-10/mt) from last week.Ethylene spot prices on Thursday were assessed at the Euro 690-700/mt FD North West Europe levels, a sharp decrease of Euro (-45/mt) from last week.European ethylene contract price for May 2025 settled at the Euro 1135/MT FD North West Europe levels. This price represents a plunge of Euro 70/MT from its April 2025 settlement levels.