02 December 2009 21:41 [Source: ICIS news]
HOUSTON (ICIS news)--Suppliers’ efforts to raise polyvinyl chloride (PVC) prices by 3 cents/lb ($66/tonne, €44/tonne) in November failed in the US vinyl segment, a pipe and siding extruder said on Wednesday.
“It is up zero in November and December,” the source said.
“They [suppliers] are just going to try to placate for now and work on January prices,” the source added.
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Buyer sources it was understandable that suppliers pushed for the increase because feedstock costs had continued to rise sharply since mid-summer.
Ethylene prices have risen about 6.5 cents/lb since July, with chlorine up over 10 cents/dst (dry short ton) since late June.
According to global chemical intelligence service ICIS pricing, October ethylene contracts settled at 37.25 cents/lb, sharply up from July’s 29.75 cents/lb contract settlement. November ethylene contracts have not concluded, but some sources expect it could gain as much as 3 cents/lb due to tight supply.
Chlorine contract prices ranged $390-410/dst by the end of the third quarter and maintaining this into October and November, jumping from second-quarter contracts of $160-185/dst.
Vinyl products makers said the downstream markets were more stressed than many had anticipated, citing credit difficulties and a rising number of bankruptcies while predicting a flat 2010 for construction.
“It is a survival mode right now. If this keeps up, more upstream integration is likely,” a buyer said.
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