This week, the European PVC market witnessed a notable divergence as spot prices tumbled while contract values held steady across the region. The downturn in spot pricing has raised concerns among market participants, particularly as the seasonal uptick in demand from the construction sector has so far failed to translate into meaningful price support.
An industry source in Europe, speaking to a correspondent on condition of anonymity, explained that the downtrend was driven by a combination of factors. “The European PVC market experienced a downtrend in spite of a key derivative sector like construction witnessing a seasonal upswing. Market participants cited excess supplies, slowdown in material offtake, and a drop in feedstock rates as key factors weighing on the overall market conditions. General demand sentiments were weak, with material replenishment initiatives by customers experiencing a decelerated momentum. While output was held stable by producers in Europe, demand is unlikely to witness a rebound in the immediate future,” the source noted.
Spot delivered PVC prices in North West Europe were assessed at Euro 815–825/mt FD levels, reflecting a week-on-week decline of Euro 30/mt. The fall underscores the challenges sellers face in clearing volumes amid lackluster buying interest.
By contrast, PVC contract markets displayed a more stable tone. Suspension grade PVC values in Germany and France were unchanged at Euro 950–955/mt FD NWE, while in Italy, suspension grade PVC was assessed steady at Euro 960–965/mt. In the UK, however, PVC prices slipped modestly to GBP 825–830/mt FD NWE, down by GBP 5/mt compared with the prior week.
Upstream market movements added another layer of complexity. Ethylene dichloride (EDC) values in North West Europe ticked higher to USD 100–110/mt FOB, up by USD 5/mt from the previous week. Similarly, vinyl chloride monomer (VCM) prices rose to USD 485–495/mt FOB, a week-on-week gain of USD 10/mt. Despite these increases, ethylene spot values softened, slipping to Euro 660–670/mt FD NWE, down Euro 5/mt.
Meanwhile, the European ethylene contract price for October 2025 settled unchanged at Euro 1130/mt FD NWE, marking a rollover from September levels. The stability in the contract settlement indicates that while some feedstock costs edged higher, overall upstream market dynamics remain finely balanced.
Market observers suggest that unless demand from key downstream sectors improves substantially, PVC spot prices in Europe are likely to remain under pressure in the near term, even as producers attempt to maintain stable output levels to protect margins.
