23 July 2008 04:58 [Source: ICIS news]
SINGAPORE (ICIS news)--Japan’s largest vinyl chloride monomer (VCM) producer Tosoh Corp has hiked its initial offer for August cargoes by $150/tonne on surging feedstock costs and stronger downstream polyvinyl chloride(PVC) values, market sources said on Wednesday.
The offer stood at $1,150/tonne CFR (cost and freight) China, compared with July’s initial offer of $1,100/tonne and the eventual settlement level of $1,000/tonne.
Spot prices of ethylene, a key feedstock for VCM, were assessed at $1,650-1,700/tonne CFR northeast (NE) Asia last week and had risen by more than $100/tonne in the past month, according to global chemical market intelligence service ICIS pricing.
PVC producers in NE Asia meanwhile had raised their offers for August cargoes on rising domestic PVC values in China.
Market sources however said that the recent price increases in the PVC and VCM markets were mainly cost-driven.
Buying sentiments in the VCM market remained largely subdued as downstream users in China struggled to cope with rising cost pressures, the sources added.
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