28 March 2011 22:42 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS)--Polyvinyl chloride (PVC) supply in Latin America is expected to remain short in the near term because of the earthquake and tsunami in Japan, a market participant said on Monday on the sidelines of the International Petrochemical Conference (IPC).
The source said US producer Shintech was shipping substantial volumes of PVC from the US to Asia in the wake of the disaster to replace, at least in part, lost production in Japan.
As a result, Shintech exports to traditional targets in the Americas were decreasing to around 80% of historical volumes, the source said.
Shintech remains a major PVC exporter to Mexico, and to countries on the Pacific coast of Latin America.
Other US suppliers were said to have limited availability for export to Latin America, and usually sell through traders and not directly to processors in Latin America.
It remains uncertain when production would return to normal in Japan. However, the damage to four PVC production plants in Chiba and Kashima, to infrastructure and roads, along with the reduction in energy supply, will offer challenges to resin production in the country for at least the next three months and probably longer, sources said.
Hosted by the National Petrochemical & Refiners Association (NPRA), the IPC continues through Tuesday.
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