Japan's Tosoh mulls hike in VCM op rates

25 November 2008 04:17  [Source: ICIS news]

SINGAPORE (ICIS news)--Japan’s largest vinyl chloride monomer (VCM) producer Tosoh Corp could increase its production rate next month on the back of improving market sentiment, a source close to the company said on Tuesday.

 

The company’s main 400,000 tonne/year VCM plant in Nanyo is currently running at 80-85% but it could operate at full rate in December if demand in the key Chinese market picks up, the source said.

 

Tosoh Corp had earlier sold around 25,000 tonnes of the material to Chinese buyers at $400/tonne for November delivery, which was the first spot cargo sold since September, when the company pulled out of the spot export market due to sluggish demand.

 

Traders and producers said the November VCM deal was an indication of the improving sentiment seen in China's downstream polyvinyl chloride (PVC) domestic market.

 

Market players were buoyed by the recent recovery in China’s domestic PVC values, which in turn helped improve demand for VCM, industry sources said.

 

Some traders doubted whether such positive sentiment would last as persistent economic woes could derail the price recovery.

 

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By: Ng Hun Wei
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