Argentina May PVC prices likely to rise, following US lead

30 April 2010 17:07  [Source: ICIS news]

HOUSTON (ICIS news)--The domestic polyvinyl chloride (PVC) producer in Argentina was considering raising prices in May, driven by earlier increases implemented in the US, local buyers said on Friday.

The amount of the proposed increase from Solvay Indupa was not yet clear, but consumers said the hike would probably be in the order of $40-80/tonne (€30-61/tonne), and would be confirmed in early May along with the intended implementation date.

Latin American PVC prices generally follow direction from US initiatives, although at a one-to-three month lag, according to local sources.

US PVC prices were up by 13 cents/lb ($287/tonne) in the first quarter, while prices in Argentina rose $90-100/tonne during the same period to $1,170-1,280/tonne for pipe grade, according to global chemical market intelligence service ICIS pricing.

Participants in Argentina assessed PVC demand as weak, largely on the laggard pace of public construction due to budgetary delays.

Some regional sources had mentioned possible exports from Argentina into Chile, prompted by rebuilding efforts following the 27 February earthquake. However, Chilean demand for PVC products from Argentina was not evident, because the logistics costs for shipments into Chile were a deterrent, sources said.

($1 = €0.76)

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By: Ron Coifman
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