High crude gives boost to PVC over PE
20 June 2008 05:09 [Source: ICIS news]
BANGKOK (ICIS news)--High crude prices above $100/bbl have provided a silver lining for some in the vinyls industry when compared to other naphtha-based derivative products such as polyethylene (PE), said a senior industry consultant on Friday.
"Higher crude prices provide greater advantage to PVC over PE in terms of cost of production and competition," said Charles Fryer chairman of consultancy Tecnon Orbichem while presenting at the 12th Asian Chlor-Alkai conference.
He added that the current premium of $400-500/tonne PE had over PVC was due to the lower energy content PVC compared to PE. However, rising calcium carbide raw materials have raised the cost of acetylene-based PVC production in China and could dampen this advantage should coal and calcium carbide costs continue to rise.
Vinyl chloride monomer (VCM) exporters and most ethylene dichloride (EDC) exporters who sell into China would also bear the brunt of high naphtha/ethylene costs due to rising crude, he added.
The two-day conference, organised by ICIS and Tecnon OrbiChem, ends on Friday.
To discuss issues facing the chemical industry go to ICIS connect
By: Steve Tan
+65 6780 4359
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
| ICIS news FREE TRIAL |
| Get access to breaking chemical news as it happens. |
| ICIS Global Petrochemical Index (IPEX) |
| ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index |
Related Articles
- 15 Jul 08 23:38 US Coast Guard probes VCM release monitoring
- 08 Jul 08 21:58 China demand drives up US ethlyene dichloride
- 07 Jul 08 09:23 Tosoh lowers July Asia VCM offer by $70/t
- 30 Jun 08 05:33 China’s Haosen plans $143m chlor-alkali facility
- 26 Jun 08 09:59 Taiyo revises up Asia July PVC offer another $50/t
- 25 Jun 08 05:20 Tosoh hikes July Asia VCM offer by $120/tonne
- 19 Jun 08 02:33 Asia chlor-alkali makers worry about rising costs
- 20 Jun 08 17:10 China ShengdaTech to move coal-based chem plant
- 20 Jun 08 03:06 Pakistan's Engro to expand PVC unit by November
- 19 Jun 08 11:01 SE Asia PVC demand set to grow 4.5% over 5 years
- 19 Jun 08 09:08 China, India to lead PVC demand surge – Reliance
- 18 Jun 08 10:55 Vinythai PVC expansion to be complete by end June
Latest News
- 20 Jun 13 04:17 China’s Wuhan Petrochemical holds trial runs at PE, PP units
- 20 Jun 13 04:08 Japan’s Asahi Kasei runs ADA unit at around 75% after restart
- 20 Jun 13 04:05 HSBC preliminary June PMI for China falls to nine-month low
- 20 Jun 13 02:41 S Korea’s Lotte buys 25,000 tonnes naphtha at lower premiums
- 19 Jun 13 23:59 Semi-refined paraffin wax prices soften on Poland/Belarus border