14 May 2009 13:33 [Source: ICIS news]
SEOUL (ICIS news)--Easing price competition and lower freight costs are likely to bring some relief to Asian sellers in the Middle East’s polyvinyl chloride (PVC) market, traders and producers said on Thursday
However, poor pricing conditions could soon force US chlor-alkali producers to cut back their export volumes, market sources said.
“Last year, US producers could rely on the high caustic soda values to make up for the poor margins from their chlorine business,” according to one trader, who was speaking on the sidelines of the Asian Petrochemical Industry Conference (APIC) in Seoul, South Korea.
“But now that caustic soda prices have also plummeted, they cannot afford to cut their PVC prices further.”
Caustic soda and chlorine are produced simultaneously during the same manufacturing process. PVC is a chlorine derivative.
According to a market source, already one major ?xml:namespace>
US-origin PVC cargoes for June delivery could gain by $40-50/tonne FOB US Gulf, an Asian PVC producer said.
The prices of such cargoes would be almost on-par with Asian parcels by the time they arrived in the
Selling ideas for northeast Asian PVC cargoes in the
Lower freight costs have also helped soften the blow of keen price competition in the
PVC shipping costs from northeast Asia to the
Asian PVC cargoes are usually sold into the
APIC '09 began on 14 May and ends on 15 May.
($1 = €0.74)
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