10 December 2008 04:25 [Source: ICIS news]
SINGAPORE (ICIS news)--Major ethylene-based polyvinyl chloride (PVC) producers in Asia have hiked their offers for January exports to China by $30.00-60.00/tonne (€23.10-46.20/tonne) on the back of improving market sentiment, traders and producers said on Wednesday.
Offers from northeast and southeast Asian producers were pegged at $630-660/tonne CFR (cost and freight) China Main Port (CMP), compared to December’s concluded levels of $590-600/tonne CFR CMP.
This marks the first time since August that producers have attempted to raise prices for their PVC cargoes.
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Ethylene-based PVC producers have however been buoyed by the poor market conditions for carbide-based PVC, traders said.
This was because ethylene prices have fallen in recent months along with plunging crude values, handing ethylene-based PVC producers a cost advantage over their carbide-based counterparts.
Unable to cope with the poor economics, many carbide-based PVC producers have chosen to shut down, leaving buyers with few options but to purchase the ethylene-based grade. This in turn helped to exert some upward pressure on prices, traders and producers said.
Industry sources however added that market downsides still exist, including the upcoming Lunar New Year holiday in January across much of
($1 = €0.77)
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