Vinyls segment says no US PVC November increase

02 December 2009 21:41  [Source: ICIS news]

Vinyls segment says noHOUSTON (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.

The vinyls segment is firmly tied to the US building and construction industry, providing pipe, siding, fencing and numerous other products made by extrusion and moulding PVC.

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.

US PVC producers include Shintech, Formosa Plastics and Georgia Gulf. Buyers include most pipe-resin and construction companies, along with vinyl product manufacturers of siding, fence, and pipe.

($1=€0.66)

For more on PVC visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

ICIS Free Trials Sign Up


By: Judith Taylor
+1 713 525 2653



AddThis Social Bookmark Button

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