29 September 2011 20:21 [Source: ICIS news]
HOUSTON (ICIS)--A US polyvinyl chloride (PVC) producer has delayed a 3 cent/lb ($66/tonne, €49/tonne) price increase announcement initially intended for September, sources said on Thursday.
The producer said its 3 cent/lb price increase would be sought in October.
One buyer said September contracts were now leaning toward a rollover.
However, another PVC buyer said domestic contracts also had the possibility to drop between 1–3 cents/lb, given the potential softening of feedstock ethylene.
A second PVC producer said it has not yet finalised what it will do on September pricing.
US PVC contract prices have been assessed flat since July.
For the first half of 2011, robust demand for US PVC exports has supported the market, with up to 60% of US PVC material being exported, by some estimates.
However, US PVC export prices reversed course in late May and have steadily declined as demand slowed, and buyers remained on the sidelines to see if prices would fall further.
Prices have fallen more than $300/tonne from its peak of the $1250s/tonne FOB (free on board) USG (US Gulf). Export prices were now heard in the upper $800s/tonne FOB USG this week.
Major US PVC producers include Formosa Plastics USA, Shintech, Georgia Gulf, Occidental Chemical (OxyVinyls) and Westlake.
($1 = €0.74)
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