18 September 2009 21:16 [Source: ICIS news]
HOUSTON (ICIS news)--US polyvinyl chloride (PVC) August contracts remained not settled as a stand-off continued between buyers and sellers, buyers said on Friday.
Suppliers announced they would seek a 3 cents/lb ($66/tonne or €45/tonne) August increase - following successful implementation of the same amount in July - underpinned by tight chlorine supply, sources said.
Buyers balked early on the August price move and when several suppliers announced a 2 cents/lb September hike, the buy-side stalled, observers said.
Support for the August increase weakened amid improving chlorine supply fostered by better operating rates in the chlor-alkali sector, market participants said.
Buyers said they were unlikely to pass the increases downstream to customers because demand in the construction and municipal pipe segments has suffered from the economic recession.
A potential August/September contract settlement was being quietly discussed this week, buyers said.
Pipe-grade PVC resin contracts were assessed in a 60-62 cents/lb ($1,323-1,367/tonne, €900-930/tonne) July range, while general purpose material was assessed in a 64-66 cents/lb spread, according to global chemical market intelligence service ICIS pricing.
US PVC producers include Formosa Plastics, ?xml:namespace>
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