09 December 1996 00:00 [Source: ACN]
PVC demand in Japan has surged with increased construction activity in the country.
Japanese producers have reportedly sold all their material for December and almost half for January. They have hiked January offers to US$700/tonne cif NEA.
Exports from the US are usually higher in December and January as domestic demand falls. However, US housing starts are also up. Since US demand is still high, PVC prices in Asia will have to rise to support US exports, sources said.
Strong PVC demand has tightened supplies of vinyl chloride monomer (VCM) and ethylene dichloride (EDC) from the US.
November prices for VCM were below US$500/tonne cfr Japan and the price of EDC was US$320-350/tonne cfr Japan.
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