NPRA '11: Brazil PVC shipments remain slow on short supply
27 March 2011 21:27 [Source: ICIS news]
SAN ANTONIO, ?xml:namespace>Texas (ICIS)--Polyvinyl chloride (PVC) shipments remain slow in Brazil as a result of short supply following the power blackout of early February, a market participant said on Sunday.
Market talk in Brazil suggested that price increases of at least $130/tonne (€92/tonne) could be announced for April, at least partially driven by snug availability, according to the source.
PVC production was halted at several plants in Brazil because of the February blackout, and although operations have returned to normal, inventories in the country remain tight, the source said on the sidelines of the International Petrochemical Conference (IPC).
Meanwhile, PVC demand continues to rise on Brazil’s robust economic growth.
Public and private construction in preparation for the 2014 Soccer World Cup and 2016 Olympics will place additional strain on resin availability since no additional capacity will be coming on line until 2012-2013.
Brazil is a net PVC importer and relies on product from different regions, mainly from Colombia, which supplies approximately 50% of its PVC imports. Argentina supplies 20% of Brazil’s import requirements, and Asia and Europe 30%, the source said.
Hosted by the National Petrochemical & Refiners Association (NPRA), the IPC continues through Tuesday.
($1 = €0.71)
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