Tosoh hikes July Asia VCM offer by $120/tonne

25 June 2008 05:20  [Source: ICIS news]

SINGAPORE (ICIS news)--Japan’s largest vinyl chloride monomer (VCM) producer Tosoh Corp has hiked its initial offer for July cargoes by $120/tonne on surging feedstock costs and stronger polyvinyl chloride(PVC) values, a source familiar with the situation said on Wednesday.

The offer stood at $1,100/tonne CFR (cost and freight) China, compared with June’s initial offer of $1,020/tonne and the eventual settlement level of $980/tonne.

VCM demand was largely unchanged from the previous month with counter-bids now at around $980/tonne CFR China, the source said.

Spot prices of ethylene, a key feedstock for VCM, had risen by more than $100/tonne on a CFR northeast (NE) Asia basis since the beginning of the month, according to global chemical market intelligence service ICIS pricing.

PVC producers in NE Asia meanwhile had raised their offers for June cargoes by $50/tonne over the previous month on the back of rising domestic PVC values in China.

Taiwanese producer Formosa Corp was offering July PVC cargoes at $1,250/tonne CFR China, a rise of $50/tonne from its June settlement levels.

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Chloe Yap contributed to this article.

By: Ng Hun Wei
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