Venezuela's Pequiven starts negotiations for PVC imports

07 July 2011 23:12  [Source: ICIS news]

HOUSTON (ICIS)--Venezuelan state producer Pequiven is in the initial stages of negotiations for the purchase of 6,000-7,000 tonnes of polyvinyl chloride (PVC) to cover the country’s anticipated deficit from September to December, local sources said on Thursday.

The resin purchases have not been finalised and discussions with suppliers are ongoing, the sources said.

Intended shipping schedules for the imports are not available, and it is not known whether the total PVC volume will be received in one parcel or in split shipments.

The resin imports have been allocated for private industry use, since domestic PVC production is targeted for the assembly of petrocasas – publicly subsidised low-cost housing.

Three plants in Venezuela are currently making petrocasas, but production rates for the houses were not available.

Sources said private businesses are receiving about 80% of their usual PVC requirements from Pequiven, as part of the local resin maker’s production is already being directed to make the petrocasas.

Some local participants, however, said domestic PVC allocation is at lower levels.

Pequiven’s domestic PVC prices are currently at $737-750/tonne (€516-525/tonne) DEL (delivered) for pipe-grade, much lower than offers elsewhere in Latin America.

($1 = €0.70)

For more on PVC visit ICIS chemical intelligence

By: Ron Coifman
+1 713 525 2653

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