02 March 2010 10:36 [Source: ICIS news]
SINGAPORE (ICIS news)--Asian vinyl chloride monomer (VCM) cargoes for March delivery have been offered at $40/tonne (€29.60/tonne) higher than February’s settlement levels due to rising downstream prices and reduced availability, market players said on Tuesday.
Japanese material was heard to be offered this week at $880/tonne CFR (cost and freight) NE (northeast) Asia, compared with February’s levels of $840/tonne CFR NE Asia, sources said.
A VCM seller said the price increase was justified since downstream polyvinyl chloride (PVC) values were also showing signs of increasing in March.
A key Taiwan-based producer last week raised its benchmark PVC offer for cargoes into China to $1,040/tonne CFR China, which was $20/tonne higher than the previous month.
Supply disruptions were also exerting upward pressure on VCM prices, sellers said.
Japan’s Keiyo Monomer, a joint venture between Asahi Glass and Maruzen Petrochemcial, shut down its 200,000 tonne/year VCM plant late last month for 7-10 days after experiencing technical problems, market players said.
No firm bids had been received yet, a VCM producer said. Chinese buyers, however, believed the offer price to be unacceptable, given that feedstock ethylene values had been softening in recent weeks.
($1 = €0.74)
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