Japan's Tosoh sells Feb VCM at 10% higher than Jan cargoes

15 January 2009 08:19  [Source: ICIS news]

SINGAPORE (ICIS news)--Japan’s largest vinyl chloride monomer (VCM) producer Tosoh Corp has sold cargoes for February loading at $550/tonne (€418/tonne) CFR (cost and freight) NE Asia (northeast Asia), 10% more than the price fetched in the previous month, a source close to the company said on Thursday.

Around 35,000- 40,000 tonnes of the material were sold to Chinese buyers, at a price that was just $10/tonne lower than its initial offer of $560/tonne CFR NE Asia.

Strong domestic prices of downstream polyvinyl chloride (PVC) in China and low production rates of carbide-based PVC producers were the main factors that helped to lift prices, traders and producers said.

With many carbide-based PVC plants in China either shut or operating at reduced rates due to high feedstock costs, ethylene-based PVC producers had to cover for the shortfall. This helped boost demand for VCM, industry sources said.

($1 = €0.76)

For more on Tosoh Corp visit ICIS company intelligence
For more on VCM visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Ng Hun Wei
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly