01 April 2010 23:26 [Source: ICIS news]
HOUSTON (ICIS news)--A nearly 5% increase in domestic polyvinyl chloride (PVC) prices in Brazil was expected for April on robust demand amid a healthy economy, local sources said on Thursday.
A key local PVC producer said it was considering raising prices by about 5% from March to April, and a major resin processor confirmed the increase for this month.
The processor said local resin prices in April were agreed at $1,400/tonne (€1,036/tonne) DEL (delivered) for larger buyers, before local taxes. For smaller customers, prices were agreed at $1,500-1,600/tonne, same basis.
Resin demand in Brazil was strong, sources said. Significant growth and development was noted in the healthy economic environment. Additionally, robust activity in the construction sector was further encouraged by government spending in low-cost housing, participants said.
Brazil consumes around 1m tonnes/year of PVC. Of these, 700,000 tonnes/year of PVC was produced domestically, and the balance is imported, mostly from Colombia.
Imports from other traditional suppliers are insignificant, as a Brazilian antidumping tax imposed on imports from Mexico and the US makes these sources uncompetitive.
Domestic PVC prices in Brazil before the April increase were assessed at $1,300-1,400/tonne DEL for pipe grade, according to global chemical market intelligence service ICIS pricing.
Braskem and Solvay are major producers in Brazil.
($1 = €0.74)
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections