European polyvinyl chloride (PVC) prices witnessed a slight downturn in the first week of February 2025, influenced by reduced Ethylene Dichloride (EDC) prices and sluggish market demand. While producers initially proposed a rollover in prices at the start of the month, subdued buying activity and weaker negotiations resulted in moderate downward adjustments.

Industry sources indicate that supply chains remained stable throughout January, but seasonal factors further constrained order activity. Many processors extended holiday breaks, leading to an additional drop in short-term demand. With no immediate signs of improvement, European PVC markets are expected to remain under pressure in the coming weeks.

Looking ahead, order activity in the PVC sector is anticipated to stay muted as processors show little urgency in stockpiling materials. The stability of the EDC prices, coupled with sustained weak demand, suggests that downward price pressure on PVC and its compounds will persist into February. Market participants report that some processors are consolidating their supplier base, aiming to increase their negotiation volume per supplier in search of better pricing terms.

Renegotiated quotations implemented in January have already led to reductions across numerous contracts, forcing some producers to offload material onto the open market. This could further suppress PVC prices in the first quarter of 2025, particularly if demand fails to recover.

While PVC prices edged lower, broader polymer markets in Europe faced mixed trends. Early February saw supply disruptions in the regional market due to shipment delays and a sharp increase in upstream Ethylene prices. Despite these challenges, restocking activity remained subdued, with many participants adopting a wait-and-see approach.

Limited import availability, driven by low freight costs and a seasonal slowdown in Asia following the Lunar New Year, forced European PVC buyers to rely more on domestic supply. Freight rates across major European trade routes declined in late January, with Rotterdam-to-New York rates dropping 10% to USD 2,469 per 40ft container and Shanghai-to-Rotterdam rates falling 5% to USD 3,125. Drewry anticipates further slight decreases as increased capacity puts downward pressure on spot rates in the PVC market.

The decline in European PVC prices since the end of January 2025 underscores the prevailing market softness, shaped by reduced feedstock EDC costs, cautious buyer behavior, and strategic supply-side adjustments. Additionally, the overall stability in chemical producer prices highlights a continued challenging environment for the sector. As per ChemAnalyst, as the PVC market enters February, European market conditions suggest further price adjustments, with demand fundamentals dictating the pace of recovery in the months ahead.