US PVC producers seek 4 cent increase for July

19 June 2008 23:03  [Source: ICIS news]

HOUSTON (ICIS news)--US polyvinyl chloride (PVC) producers nominated July contract price hikes of plus 4 cents/lb ($88/tonne or €56/tonne), sources said on Thursday.

Industry participants said producers Occidental Chemical (OxyChem), Shintech, Formosa Plastics, Georgia Gulf and Westlake proposed 4 cent/lb price hikes for July.

Negotiations were ongoing this week between buyers and sellers over a proposed 4 cent/lb price hike for May contracts, and sources said they were optimistic that a settlement would be reached sometime next week.

Producers said rising costs for feedstock ethylene, nominated at plus 5-15 cents/lb for June contracts, and other production expenses have stripped PVC resin profit margins to such an extent that full implementation of the May price hike is required.

However, a buy-side source said that continued weak US PVC demand will enable buyers to negotiate May contracts as low as plus 1 cent/lb.

US PVC producers include Westlake, Occidental Chemical, Shintech, Georgia Gulf and Formosa.

($1 = €0.64)

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By: Greg Holt
+1 713 525 2653

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