18 July 2011 21:06 [Source: ICIS news]
HOUSTON (ICIS)--US polyvinyl chloride (PVC) export prices appeared to have reached a bottom after a decline since late May, sources said on Monday.
However, buying interest has not yet returned from China, and US participants held mixed views on when Asian demand would return.
PVC export prices are at $980–1,010/tonne (€696–717/tonne) FOB (free on board) USG (US Gulf), as assessed by ICIS.
Discussions clustered around $1,000–1,010/tonne FOB USG, although some prices were heard at levels under $1,000/tonne. One source said those parcels were destined for Egypt and locations in South America.
Meanwhile, US PVC participants are waiting for the August offer from Formosa Plastics Corporation (FPC), Asian market, as the offer is typically considered a key benchmark for PVC trade.
Early indications are leaning toward stable or firm pricing in Asia, which would influence direction of the US market, sources said.
Some market participants said they were optimistic that US PVC export demand, which had been waning since late May, would tick back up in August.
However, another trader said the annual month-long Muslim holiday of Ramadan, which begins 1 August, would also affect US exports, as businesses Muslim countries could be buying ahead of the holiday to ensure inventories are supplied.
Major US PVC producers include Shintech, Formosa Plastics, Westlake, Oxy Vinyls and Georgia Gulf.
($1 = €0.71)
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections