Ineos announces PVC increase of €100/tonne, effective Aug. 1 or when contracts allow; producers pushing for a €170/tonne hike on August ethylene, propylene contracts, say buyers

LOS ANGELES , July 27, 2012 () –

While ethylene contracts are still unsettled, Ineos Group Ltd. has announced a €100/tonne (US$124) increase on polyvinyl chloride (PVC) contract prices, effective Aug. 1 or when contracts allow, reported Platts on July 27.

Ethylene prices are expected to rise significantly next month, according to market sources.

Buyers are said to be targeting double-digit increases as a start to bargaining due to tenuous markets and end-user demand, in addition to the seasonal downtime that will be under way in August, Platts reported.

The contract price in Northwest Europe as of July 25 was settled at a drop of €75-€80/tonne, to €1,057.50/tonne.

Producers are pressing for an August increase of €170/tonne for both ethylene and propylene, according to buyers who usually participate in monthly ethylene contract price settlements.

Two producers are said to support this pricing position for August mostly because of feedstock costs and as a way to reinvigorate profit margins, reported Platts.

The primary source of this article is Platts, New York, New York, on July 27, 2012.

 

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