02 April 2008 13:42 [Source: ICIS news]
SHANGHAI (ICIS news)--Prices of polyvinyl chloride (PVC) in China have risen CNY600-700/tonne ($86-100/tonne) from mid-March levels on high prices of feedstock calcium carbide and many PVC producers are under pressure to cut operating rates to 60-70%, traders and producers said on Wednesday.
PVC prices stood at yuan (CNY)8,470-8,520/tonne EXWH (ex-warehouse) east China and CNY 8,500-8,550/tonne EXWH south China, local traders said.
Calcium carbide, a raw material for PVC has an energy intensive production process and was still in short supply due to the continuing power rations, sources from the National Development and Reform Commission (NDRC) said.
Calcium carbide prices have climbed sharply to CNY 3,900/tonne EXWH east China this week, up CNY 100-200/tonne over last week.
Another reason for the shortage of calcium carbide was the upcoming Olympics in Beijing, said sources, adding that the event would require ample energy supply, which meant high energy-consuming industries, would have to restrict consumption.
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