Brazil PVC prices may rise by 5% on robust demand

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)

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By: Ron Coifman
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