Georgia Gulf’s FM adds to supply worries in Latin America
15 April 2011 23:30 [Source: ICIS news]
HOUSTON (ICIS)--Polyvinyl chloride (PVC) availability was a source of concern among buyers in Latin America following US ?xml:namespace>Georgia Gulf’s declaration of force majeure (FM) on PVC supply, regional sources said on Friday.
Georgia Gulf declared FM following an ethylene shortage and recent chlor-alkali production outages at its complex at Plaquemine, Louisiana, the company said.
Operating rates at the Plaquemine 560,000 tonne/year PVC facility were reduced by 33%.
Adding to supply worries, PVC remained tight throughout Latin America because substantial volumes were being shipped from the US to Asia to make up for lost production in Japan following the earthquake and tsunami, sources said.
Although PVC buyers in Mexico and northern South America worried over availability, processors hold sufficient inventories through May. Consequently, resin price negotiations are lacking in urgency despite the restricted resin volumes offered, sources said.
Participants in Brazil and Argentina were less concerned and said PVC supply was adequate.
Meanwhile, the Easter holidays next week would likely dampen demand in Latin America, according to participants.
For more on PVC visit ICIS chemical intelligenceBy: Ron Coifman+1 713 525 2653
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