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Vinyls producer LVM to keep NWE customers on allocation until Sep

Vinyls producer LVM will keep its Northwest European customers on “strict allocation” at least until the end of August, a company source said Thursday.

The company had placed its PVC contract customers on allocation at the start of June, due a shortage of VCM and PVC stemming from the erosion in the caustic market. However, with the situation yet to have eased, the source said contract customers will continue to remain on restricted supplies throughout July and August. “We have less than half the normal amount of capacity due to the shutdown of our VCM plant in Tessanderlo for planned maintenance, and also because of the shortage of chlorine within Europe,” he said.

“So we are on limited PVC production and if we wish to keep all customers then they all have to give a little and go on allocation.” The 580,000 mt/year VCM plant in Tessenderlo was not due to start up until June 26, he added. German polyvinyl chloride producer Vinnolit had also introduced conditional volume restrictions on its contract customers, a company source said Thursday, with the possibility of full allocation for July. Additionally, PVC producer Ineos Vinyls was continuing allocations to its customers in the UK and parts of Germany.


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