April PVC prices in Mexico likely to rise on feedstocks

17 March 2011 23:14  [Source: ICIS news]

HOUSTON (ICIS)--Polyvinyl chloride (PVC) prices in Mexico are expected to rise by a significant, but undetermined amount in April on tight supply and higher feedstock costs, market sources said on Thursday.

The domestic PVC producer and US suppliers into Mexico were sold out of resin for March since at least since mid-month, market participants said.

Industry participants anticipated a substantial April price increase for PVC in Mexico given short resin availability, high crude oil values and market uncertainty caused by the earthquake, tsunami and ongoing nuclear crisis in Japan.

The PVC producer in Mexico is not yet offering resin for April because costs needed to be assessed before the price hike initiative is announced, market sources said.

An announcement on April PVC prices is expected in Mexico by late next week, according to sources there.

February pipe-grade PVC prices in Mexico were assessed at $1,140-1,190/tonne (€821-857/tonne), with a $50 price increase generally agreed for March.

The PVC producer in Mexico is Mexichem.

For more on PVC, visit ICIS chemical intelligence

By: Ron Coifman
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