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European and Turkish PVC: NWE sees limited spot activity ahead of holidays.

European and Turkish PVC: NWE sees limited spot activity ahead of holidays
Activity was limited in the European PVC spot market as the Christmas holidays approach and converters reduce their operations. A distributor said that deliveries are not happening as of the start of the trading week until the end of the next week, as a result of the holiday season.

• CFR Turkey up $70/mt on week at highest since Aug 2008
• Spot FD NWE price stays stable on week

Activity was limited in the European PVC spot market as the Christmas holidays approach and converters reduce their operations. A distributor said that deliveries are not happening as of the start of the trading week until the end of the next week, as a result of the holiday season.
S&P Global Platts assessed spot FD NWE stable on the week at Eur950/mt on Dec. 23.
December PVC supply improved compared to previous months. However, customers were still looking to secure more product ahead of January, although some companies had to start their winter holidays earlier than planned as not enough PVC could have been sourced, a producer said.
"We are still running at maximum capacity, but it was still not enough to cover all the needs in December, because they were at such a high level," the producer said.
PVC demand in Europe continues to be healthy, amid a strong construction sector in Europe supported by government incentives to foster the economic recovery.
Producers expect January to be another busy month, as demand in Europe and externally is expected to remain firm during the first half of 2021, market sources said.
December contract prices were finalized higher than November, market sources said. Movements in upstream ethylene will continue to be watched ahead of the January industry-settled contract price settlement.
In the Turkish market, the shortage of PVC continued, a local source said. The warmer winter in comparison to previous years continued to support local demand allowing the construction sector to operate further.
"Turkey is very appealing, if you have product to sell," a source said.
S&P Global Platts assessed PVC CFR Turkey at $1,450/mt on Dec. 23, up $70/mt on the week, at the highest level since August 2008.
Appetite to export among European sellers remained strong in the week, due to attractive netbacks. However, European sellers ability to export was curtailed by existing commitments to the local market and limited availability.

Platts


Dec 24, 2020 23:50
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