17 July 2008 22:13 [Source: ICIS news]
HOUSTON (ICIS news)--Mexican polyvinyl chloride (PVC) producer Mexichem has nominated an 8 cent/lb ($176/tonne, €111/tonne) price hike effective on 1 August, based on rising feedstock ethylene costs, a source close to the company said on Wednesday.
The source said Mexichem effectively withdrew a $50/dmt (dry metric tonne) price hike nomination planned for 15 July in favour of the proposed August increase.
Similarly, US producers have also nominated an 8 cent/lb price hike for July US PVC contracts.
Although the North American Free Trade Agreement (NAFTA) puts US and Mexican PVC producers in direct competition, prices on different sides of the border have recently diverged due to dissimilar production costs.
Pipe-grade PVC resin prices in Mexico were assessed at $1,500-1,550/tonne last week, according to global chemical market intelligence service ICIS pricing.
($1 = €0.63)
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