NE Asia PVC to rise by $150/t on high feedstock

08 May 2008 05:28  [Source: ICIS news]

SINGAPORE (ICIS news)--Offers for June and July emulsion-grade polyvinyl chloride (PVC) cargoes are likely to rise by around $150/tonne on surging feedstock costs and tightening supplies in China, producers in northeast (NE) Asia said on Thursday.

A South Korean producer said he may offer his June cargoes at $1,500-1,550/tonne CFR China while another NE Asian producer described a "reasonable" offer at $1,500/tonne.

Prices of April and May cargoes had already risen by $100/tonne to around $1,380/tonne since March.

"With the price of ethylene rising so rapidly, producers have no choice but to increase their offers if they want to continue operating," an emulsion-grade PVC seller said.

Spot prices of feedstock ethylene had risen by more than $200/tonne in the past month to over $1,400/tonne CFR NE Asia, according to global chemical market intelligence service ICIS pricing.

Supplies of emulsion-grade PVC in China were also tightening as Chinese producers faced shortness in feedstock calcium carbide due to the environmental regulations imposed in preparation for the upcoming Beijing Olympics.

Prices for emulsion-grade PVC are usually adjusted once every two months, a producer said and settled prices usually fell over a $50/tonne range, depending on the application of the product.

Emulsion PVC used to produce toys commands the highest prices while those used for synthetic leather usually command the lowest values.

For more on PVC visit ICIS chemical intelligence

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By: Ng Hun Wei
+65 6780 4359

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