March PVC values in Mexico likely to rise on feedstocks
25 February 2011 23:49 [Source: ICIS news]
HOUSTON (ICIS)--Polyvinyl chloride (PVC) prices in ?xml:namespace>Mexico would likely rise this month, driven by higher feedstock and crude oil values, sources said on Friday.
Mexichem announced a $50/tonne (€36/tonne) hike initiative for March, driven by rising ethylene costs and market volatility, local market participants said.
However, it is too early to determine the outcome of the March initiative.
Quotes for March imports to Mexico from the US were heard at an increase of $30-40/tonne. In February, PVC import offers from the US firmed by $70/tonne.
The price increase initiatives in Mexico were driven by tight feedstock ethylene and vinyl chloride monomer (VCM) availability in the region; disruptions from the fire at the Enterprise Products site in Mont Belvieu, Texas; and rising crude oil prices, buyers and sellers said.
Mexichem has sold out for February, while PVC availability in Mexico from US exporters remained short. One US supplier into Mexico was sold out for March, sources said.
Healthy export volumes from Mexico were ongoing, with Colombia and Europe – mainly Germany, the UK and Italy – noted as key destinations, according to market participants.
Domestic pipe-grade PVC prices in Mexico are $1,140–1,190/tonne DEL (delivered), as assessed by ICIS.
($1 = €0.72)
For more on PVC visit ICIS chemical intelligenceBy: Ron Coifman+1 713 525 2653
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