16 May 2008 08:27 [Source: ICIS news]
SINGAPORE (ICIS news)--Japan’s largest vinyl chloride monomer (VCM) producer Tosoh Corp has hiked its initial offer for June VCM cargoes by $60/tonne on surging feedstock costs and stronger polyvinyl chloride(PVC) values, a company source said on Friday.
The offer, released early this week, stood at $1,020/tonne CFR (cost and freight) China compared with May’s settlement level of $960/tonne.
Spot prices of ethylene, a key feedstock for VCM, had risen by more than $200/tonne on a CFR northeast (NE) Asia basis in the past four weeks, according to global chemical market intelligence service ICIS pricing.
PVC producers in NE Asia meanwhile had raised their offers for June cargoes by $20-30/tonne over the previous month. Taiwanese producer Formosa Corp was offering June PVC cargoes at $1,200/tonne, a rise of $30/tonne from its May settlement levels.
Buying interest to Tosoh’s latest VCM offer was heard to be thin so far as traders expect the company to lower its offer in coming weeks
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