April PVC price increases in Latin America see little resistance

08 April 2011 17:13  [Source: ICIS news]

HOUSTON (ICIS)--Price increases for polyvinyl chloride (PVC) in Latin America were implemented early in April at different levels, depending on the country, driven by short supply and strong demand amid little buyer resistance, regional participants said on Friday.

“All I can say is that customers are desperate for product and prices [are] rising,” a source said.

Resin availability continues to be tight in the Americas, as Shintech – a PVC producer in the US and a key exporter to Latin America – is diverting material to Japan to fulfil commitments in Asia, according to market participants in Latin America.

Japan is usually a net PVC exporter.

Shin-Etsu Chemical, Shintech’s parent company in Japan, shut down its 500,000 tonne/year plant at Kashima because of the earthquake and tsunami of 11 March. The plant remains off line and it is extremely difficult to ascertain when the plant will be restarted, a company source said.

Other PVC production plants also remain shut in Japan.

Other US producers who maintain a presence in Latin America are sold out for April and have no additional availability for this month. One manufacturer has reduced deliveries in the US, sources said.

Meanwhile, Mexichem, the PVC producer in Mexico, maintains an ongoing export schedule to Asia and other regions because of strong demand and healthy returns, sources in Latin America said.

Additionally, the ongoing turmoil in north Africa and the Middle East is still a source of concern to market participants in the Americas, supporting rising PVC prices.

The exception to this trend in Latin America was Venezuela, where government list prices are in place and PVC values remained stable.

For more on PVC visit ICIS chemical intelligence

By: Ron Coifman
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly