Polyvinyl Chloride Prices Experiencing Rise in Europe
- 15-Nov-2021 5:27 PM
- Journalist: Rene Swann
Polyvinyl Chloride (PVC) prices have experienced major week on week rise the past week in Europe with both the PVC contract and spot prices galloping higher in Europe. The sharp rise was triggered by firm regional demand trends and continued tighter product availability. The rising feedstock ethylene prices have further supported the uptrend in the prices of PVC in the region.
Northwest PVC suspension grade contract prices were assessed at Euro 1730 per tonne on November 12 which was a week on week surge of around Euro 85 per tonne. FD Northwest PVC prices were assessed a higher at Euro 1755 per tonne which also showed a spike of Euro 80 from the previous week.
Feedstock Ethylene spot prices were assessed at Euro 1030 per tonne while the contract prices for Europe Ethylene in November settled at Euro 1283 per tonne representing a steep rise of Euros 90 per tonne from the October levels.
Other reasons supporting price hike in the Europe is the declining imports from the USA and rising power costs.
PVC is a polymer which has major application in construction and automotive sector. It is mainly used to manufacture pipes and cables and automotive parts. The global demand for PVC stood at around 43 million tonnes in 2020 and is expected to rise at a CAGR of around 4% during the upcoming years till 2030.
As per ChemAnalyst, “the PVC prices which have been experiencing week on week rise in the European region are expected to maintain a firm trend given that the power costs are not expected to come down due to skyrocketing prices of natural gas and supply shortage of coal. The ethylene prices are also expected to rise which will create upwards pressure on the PVC prices in Europe.”