Tosoh offers August VCM at $800/tonne

26 July 2007 10:28  [Source: ICIS news]

SINGAPORE (ICIS news)--Tosoh Corp, offered its benchmark August business to China at $800/tonne (€583/tonne), an increase of $40/tonne from July, due to firm feedstock costs and recovering domestic PVC prices, a company source said on Thursday.

 

China domestic PVC prices have recovered to yuan (CNY) 7,900-8,000/tonne from CNY 7,200-7,300/tonne since two weeks ago after a sudden reaction to the export tax rebate cutting measure.

 

In China, VCM buyers said with PVC prices peaking and uncertainty over the impact of reduced import tax rebates for Chinese PVC exports, August VCM may be rolled over or increased by $10-20/tonne. 

 

For July, Tosoh had also offered its shipments at $800/tonne CFR (cost & freight) China on the back of strong PVC demand.

 

However, tough negotiations dragged on for two weeks due to the new tax rebates in China, which dampened VCM import demand.

 

The company eventually settled July business at $760/tonne CFR China on strong buying resistance.

 

Tosoh will reduce its VCM supply from September to November due to its plant turnarounds. 

 

It plans to shut down two VCM plants in Nanyo, Japan, in October and November.

 

The 400,000 tonne/year K-plant and 260,000 tonne/year GH-plant will be shut down for 30 days each, while the company’s 550,000 tonne/year VCM plant in Nanyo will keep running, the source added.

 

Tosoh is Japan’s largest VCM producer with a total capacity of 1.45m tonnes/year and a total caustic soda capacity of 1.2m tonnes/year.

 

($1 = €0.73)

By: Yao Wang
+65 6780 4359

< previous article(ICIS Chemical Business podcast November 2, 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly