The European polyvinyl chloride (PVC) market remained largely unchanged this week as buyers and sellers focused on September contract discussions, while spot demand showed little sign of meaningful recovery following the summer break. Despite the return of consumers to the market, activity stayed subdued, and prices rolled over in most segments.
An industry source in Europe told that, “The European PVC market primarily concentrated on September contract discussions, though spot demand remained weak despite consumers coming back from the summer break. Consequently, prices stayed mostly the same.” Market participants said negotiations for the September contract gathered momentum following the recent conclusion of the European ethylene monthly contract price (MCP).
During late August, expectations had emerged for a stable or slightly reduced ethylene MCP, in line with weakening naphtha feedstock prices and soft market fundamentals. However, when the ethylene contract eventually settled at €1,130/mt FD NWE for September, just €5/mt higher than August, it underscored the marginal shifts in upstream costs, leaving PVC producers with little justification to push through price hikes. Many PVC manufacturers have yet to declare final contract levels, with approaches varying widely, though sentiment remains cautious.
Production adjustments added another layer of complexity. Inovyn has reportedly reduced run rates at its 280,000 mt/year PVC facility in Martorell, Spain, to 50 percent of capacity, with the plant expected to continue operating at curtailed levels through December. Market players suggested that while such cutbacks may help curb oversupply, they have so far had limited effect on pricing, as regional inventories remain comfortable.
Spot prices reflected this sluggish environment. FD Northwest Europe PVC prices were assessed at €845–855/mt, flat from the previous week. In contract markets, suspension-grade PVC held steady at €950–955/mt FD NWE Germany and France, while prices in Italy were assessed at €960–965/mt, also unchanged. In the UK, however, PVC suspension-grade prices edged slightly higher to £825–830/mt, marking a modest increase of £5/mt week on week.
Broader sentiment stayed cautious, with analysts noting that stable September PVC prices in the face of falling ethylene feedstock costs reflect weak demand across construction, automotive, and packaging sectors, as well as pressure from competitively priced imports. Market watchers observed that anticipated September restocking failed to materialize, with only a marginal increase in activity compared to August.
Meanwhile, feedstock ethylene dichloride (EDC) and vinyl chloride monomer (VCM) prices held steady at $95–105/mt FOB NWE and $475–485/mt FOB NWE respectively. Spot ethylene values fell sharply by €60/mt week on week to €675–685/mt FD NWE, underscoring the softness in upstream markets despite the marginal rise in the September contract.
