Vynova's France, Netherlands PVC units remain in FM on limited VCM supply: source

Force majeure on supplies of PVC resin from Vynova's Beek, the Netherlands, and Mazingarbe, France, units, will remain in place, according to a source close to the company.

The prolongation of the FM was driven by a lack of supply from its Tessenderlo feedstock VCM unit which had had forced Vynova to declare FM on the PVC units in May, according to market sources.

"We didn't have enough VCM in Tessenderlo to run the two units at full capacity. We have only been running at 50%," the source close to the company said Nov 2.

However, both PVC plants were running at a half their operational capacity, the source close to the company said.

Vynova declared FM on both PVC plants May 3 as per a customer letter following the outage at the Tessenderlo VCM unit.

Since May 5, PVC spot prices have climbed Eur230/mt 13% to be assessed Oct 27 at Eur1,670/mt DDP, according to S&P Global Platts.

At the same time, Turkish spot prices have surged almost 16.5% or $310/mt in the same time period, mainly due to tight supply.