22 September 2011 21:55 [Source: ICIS news]
HOUSTON (ICIS)--At least two US polyvinyl chloride (PVC) producers are out with a 3 cent/lb ($66/tonne, €48/tonne) increase for September contracts, market sources said on Thursday.
August contract discussions are ongoing but initial settlements were heard.
At least two US PVC producers confirmed contracts for August were settling flat, erasing a previous position held by some producers that domestic contracts would increase by 2 cents/lb.
A major PVC distributor also viewed August contracts as a rollover.
The US PVC market has lagged with the slowdown in the housing and construction market. PVC is a widely used plastic in pipes and other building materials.
The US Department of Commerce said new home construction fell sharply in August, dropping by 5% from July.
In its monthly report on residential construction, which was released on 20 September, housing starts in August were at a seasonally adjusted annual rate of 571,000 units, a decline by 5% from the revised July estimate of 601,000.
Major US PVC producers include Formosa Plastics USA, Georgia Gulf, Occidental Chemical (OxyVinyls), Shintech and Westlake.
($1 = €0.73)
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