23 January 2007 03:52 [Source: ICIS news]
SINGAPORE (ICIS news)--Tosoh Corp, Asia’s largest vinyl chloride monomer (VCM) exporter, increased its February offer by $50/tonne to $690/tonne CFR (cost and freight) China Main Port (CMP) due to tight supply and rising feedstock costs, a source close to the company said on Tuesday.
Although negotiations underway, traders and buyers anticipated prices could be concluded around $680/tonne CFR northeast Asia (NE Asia) as buyers expected January’s price to roll over on the uncertainty of crude and PVC values, a Chinese buyer said.
Asia’s ethylene prices bucked the trend of falling crude last week and continued to hover around $1,300/tonne CFR NE Asia amid tight supply.
Asahimas Chemical, Indonesia’s largest vinyl chloride monomer (VCM) producer, reduced its operating rate at its lines to around 70% due to high costs.
Tosoh is operating its 1.45m tonne/year VCM plants in Japan at 80%. It exports around 600,000-800,000 tonnes of VCM each year, of which 50-70% goes to China.
The company planned to shut its 400,000tonne/year and 260,000/tonne/year VCM plants in Yokkaichi, Japan, in October and November for turnarounds.
Each plant will be shut for 30 days, while the company will continue operations at its 550,000/tonne/year Nanyo plant.
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