29 May 2008 07:39 [Source: ICIS news]
SINGAPORE (ICIS news)--Japan’s largest vinyl chloride monomer (VCM) producer Tosoh Corp has yet to settle its benchmark June cargoes despite lowering its initial offer price by $40/tonne, a source close to the company said on Thursday.
The company offered $1,020/tonne CFR (cost and freight) ?xml:namespace>
“A $20/tonne increase (in VCM prices) should be acceptable given that PVC prices were also up by $20-30/tonne but buyers are just not willing to pay such levels,” the source said.
As Tosoh will close its offers for June VCM cargoes this week, it might not sell any VCM spot cargoes to
The company can afford to do so as its main chlor-alkali complex in Nanyo would be shut down for maintenance and expansion works in June.
VCM producers and traders attributed the low buying interest in the market to bearish sentiment among buyers as well as the competitive prices of ethylene dichloride (EDC), another feedstock used in the PVC production process.
($1 = €0.64)
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