Latin American PVC prices seen falling in July on lower US offers
23 June 2011 22:52 [Source: ICIS news]
HOUSTON (ICIS)--Polyvinyl chloride (PVC) prices in Latin America are expected to decline in July because of cheaper offers from the ?xml:namespace>US, regional market participants said on Thursday.
The amount of the drop in prices anticipated for July throughout the region remained elusive, as suppliers and buyers from Argentina to Mexico said options are being considered while no clear domestic offers have yet surfaced for next month.
The cheapest export offers of US pipe-grade PVC stood at $1,050/tonne (€735/tonne) FOB (free on board) US Gulf, down from $1,210-1,270/tonne FOB US Gulf assessed by ICIS on 13 May.
Buyers and sellers in Latin America also said demand is down because of expectations of lower prices in the near future. However, activity will likely increase in July because inventories in the region were short, the sources said.
Market participants said several factors point to declining prices in Latin America, among them lower PVC prices in Asia, weak demand from the housing sector in the US, PVC plants in South America and the US running normally and a soft feedstock ethylene market in the US.
($1 = €0.70)
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