Prices ease due to lower demand but PVC records a price rise

Prices ease due to lower demand but PVC records a price rise

PVC bucked the pricing trend this month, as the only commodity material to record a price rise. Lower seasonal demand contributed to either modest price erosion or a rollover for all other commodity plastics.

Converters have been buying selectively in November as the end of year financial reporting period approaches. However, this may just be a temporary lull as producers are determined to push through price increases early in the new year.

Producer stocks are still low following a series of plant outages during the autumn, so availability is tight. Furthermore, the sharper than expected rise in the fourth quarter ethylene and styrene contract price is leading to additional cost pressures. The general feeling in the market is that there will be a rollover in or further slight price erosion with prices moving upwards again in January.