30 July 2010 23:35 [Source: ICIS news]
Mexican participants said market sentiment pointed toward higher resin prices in August, but it was unclear whether producers could achieve the intended $50/tonne increase or if they would have to settle for less.
US Gulf (USG) spot ethylene values jumped by 4-5 cents/lb in the week ending 30 July, with market participants attributing the surge to a lingering cracker outage and improved demand.
However, the higher feedstock values were countered by soft PVC demand in Mexico, resulting from weakness in the construction sector. Also, an anticipated pickup in activity related to potential hurricane season disruptions had yet to occur, according to sources.
Transportation remained slow between the US border and Monterrey in the aftermath of Hurricane Alex and subsequent flooding, but sources said shipment times were gradually returning to normal.
Mexican PVC was assessed stable at $930-1,000/tonne DEL (delivered) for pipe-grade in the week ended 30 July.
In related market news, sources said Mexichem remained poised to increase its PVC presence, with its purchase of Mexican plastics producers Policyd and Plasticos REX expected to be finalised in August.
Additional reporting by Ron Coifman
($1 = €0.76)
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