10 June 2010 22:23 [Source: ICIS news]
Correction: In the ICIS news story headlined "US January-April PVC exports to Mexico doubled year over year" dated 10 June 2010, please read in the second paragraph … 49,750 tonnes … and … 21,996 tonnes … instead of … 49,750,389 tonnes … and … 21,995,944 tonnes …. A corrected story follows.HOUSTON (ICIS news)--US polyvinyl chloride (PVC) exports to Mexico from January through April rose by more than 100% year over year, according to US International Trade Commission (ITC) data released on Thursday.
US PVC exports to Mexico were 49,750 tonnes from January through April, compared with 21,996 tonnes during the same months in 2009, according to the ITC.
Although the top destination for US PVC imports was Canada, the 126% increase in material sent to Mexico was significant to the US market because it underscored the effects of the Mexican government’s October 2009 decision to remove anti-dumping duties.
Mexico had eliminated its 15-year-old 36% anti-dumping duty on all US PVC imports, sources said.
One company had negotiated an 18.9% duty, but that too was eliminated on the October expiration date, regional market participants said.
Elimination of the duties came about as part of the Mexican government’s anti-monopoly investigation into a purchase bid by Mexichem to buy Policyd, the PVC resin arm of competing producer Cydsa, Mexican sources said.
Although the Mexichem/Policyd purchase has yet to be fully completed, removal of the duties allowed US PVC to flow across the border, sources said.
Mexican domestic pipe grade PVC resin was most recently assessed at 51.71-54.89 cents/lb ($1,140-1,210/tonne, €946-1,004/tonne) DEL (delivered). General purpose was assessed at 53.52-56.70 cents/lb DEL, according to ICIS pricing.
September 2009 domestic Mexican pipe PVC was assessed at 46.26-48.53 cents/lb DEL, falling to 39.01-40.83 cents/lb by January, largely due to imports. General purpose resins followed the same downward price trend.
Market sources said Mexican suppliers had taken steps to shore up the domestic prices, but the influx of US material continued to pose challenges.
US Gulf free on board (FOB) export prices currently ranged $900-960/tonne.
Mexichem is a major Mexican producer with plants across the region. Policyd manufactures PVC resins at two plants in Mexico.
US PVC producers include Formosa Plastics, Shintech and Georgia Gulf.
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