Formosa increases August Asia PVC offers by $10/t

17 July 2007 08:33  [Source: ICIS news]

SINGAPORE (ICIS news)--Taiwan’s Formosa Plastics has increased its offers for August polyvinyl chloride (PVC) shipments by $10/tonne amid high freight costs and top heavy China PVC prices, a company source said on Tuesday.

 

“Amid [the] high demand season, the moderate increase offer reflected recent top heavy China domestic PVC prices and sky rocketing freight costs,” the source said, after Formosa’s offers reached $980-990/tonne CFR (cost and freight) NE Asia (northeast Asia).

 

Meanwhile, some initial offers last week from other northeast Asian producers rose to $1,020/tonne CFR China, a $40-50/tonne hike from July settlements of $970-980/tonne CFR northeast Asia, on strong global demand and snug supply.

 

However, Formosa noted surging freight rates and sky high freight costs were restraining shipments to some markets such as the Middle East, where the shipping costs have doubled and China domestic PVC prices had tumbled after the cut in export rebates.

 

Therefore, Formosa decided on a relatively moderate increase for August offers, said the source.

 

Formosa is operating its plants in Kaohsiung, Jenwu, Linyuan and Mailiao at 100% capacity. These plants have a total nameplate capacity of 1.35m tonnes/year.

 

By: Yao Wang
+65 6780 4359

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