Implementation of a 14% surcharge on PVC from 1st July
Again, we continue to see increases in resin prices and whilst these increases are not as aggressive as some, we have seen we don’t believe that there is any real chance of a substantive reduction anytime soon. The news from the markets is that there have been force majeures put in place as a result of the recent Northern European flooding, which is causing constraints of supply plus there is now another round of routine maintenance planned. This constraint of supply is compounded by huge demand for PVC across Europe. From the 1st August 2021 we will increase the surcharge to 14% (up 2%).
Our longer-term view is that the market is unlikely to return to pricing at pre Covid levels and whilst it may fall back a little, we need to ensure our customers understand that this level of surcharge is likely to become the new normal and eventually is likely to be consolidated into price, especially as we are seeing substantial rises on all the other raw materials that are blended with the resin.
Chief Executive Officer