21 September 2009 21:53 [Source: ICIS news]
HOUSTON (ICIS news)--US polyvinyl chloride (PVC) contracts finished in a split settlement between August and September, buyers said on Monday.
Buyers confirmed August contracts settled up by 1.5 cents/lb ($33/tonne, €22/tonne) and September rose by the same amount, splitting the original 3 cents/lb sought by suppliers in August.
The 3 cents/lb August/September settlement would bring pipe-grade PVC resin contracts to a 61.5-63.5 cents/lb range, with general purpose material going to a 65.5-67.5 cents/lb spread, according to global chemical market intelligence service ICIS pricing.
Buyers firmly resisted the original 3 cents/lb August price move, largely because of weak PVC demand fostered by struggling ?xml:namespace>
Resistance to the proposed August hike stalled the September price move, eventually resulting in the August/September split.
At least one supplier had also proposed a 2 cent/lb September price initiative, but postponed it with a temporary voluntary allowance (TVA), which would be activated only if market conditions significantly changed, sources said. The supplier originally sought the 2 cent/lb September increase on the back of higher chlorine costs.
US PVC producers include Formosa Plastics,
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