19 August 2011 18:39 [Source: ICIS news]
HOUSTON (ICIS)--US polyvinyl chloride (PVC) contracts for July are poised to drop by 1 cent/lb ($22/tonne, €15/tonne), based on the sluggish domestic market and cheaper feedstocks, sources said on Friday.
In addition, the housing and construction market, which is PVC’s main end-use sector, continues to nosedive.
Some US PVC producers initially called for a 5 cent/lb increase for July, but chances of that succeeding quickly eroded after June ethylene contracts fell by 1.75 cents/lb. US ethylene for July settled flat at 56.75 cents/lb.
Negotiations are ongoing for August contracts, as several producers are pushing for a 2 cent/lb increase.
A PVC buyer was sceptical of increases taking hold in August.
“They can’t make that number work,” the source said.
US PVC June contract prices are at 55.5–60.5 cents/lb DEL (delivered) for pipe and 57.5–62.5 cents/lb (delivered) for general purpose material, as assessed by ICIS.
Major US PVC producers include Formosa Plastics USA, Georgia Gulf, Occidental Chemical, Shintech and Westlake.
($1 = €0.70)
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