17 February 2011 23:23 [Source: ICIS news]
HOUSTON (ICIS)--Domestic polyvinyl chloride (PVC) prices in Venezuela rose 34% as new price lists adjust for the currency devaluation of early January, a local producer said on Thursday.
The bolivar weakened from bolivares fuertes (Bs) 2.60/dollar to Bs4.30/dollar in early January, but domestic prices in bolivares were not adjusted at that time to reflect the devaluation, sources said.
Pequiven published new lists that were effective immediately, pricing extrusion pipe-grade PVC resin at Bs3,170/tonne ($737/tonne, €545/tonne) ?xml:namespace>
The new price list for domestic PVC still makes Venezuelan resin the cheapest in the region and could drive some material to neighbouring countries. Local sources suggested that Venezuelan resin could be sold for greater profit across the border, instead of being used for processed or finished PVC goods in the domestic market.
International PVC offers into
Sources close to Pequiven, however, projected significant growth in PVC demand because the Venezuelan government will be investing in public construction beginning in the second quarter, ahead of presidential elections in 2012.
Following the devaluation, but before the price increases, pipe-grade PVC prices in
($1 = Bs4.30)
($1 = €0.74)
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