Venezuela’s Pequiven purchases PVC from Colombia and US

14 October 2011 21:34  [Source: ICIS news]

HOUSTON (ICIS)--Venezuela polyvinyl chloride (PVC) producer Pequiven finalised the purchase of 4,000 tonnes of PVC from Mexichem in Colombia and 9,000 tonnes from Shintec in the US, sources said on Friday.

Colombian resin is currently being shipped by land and sea to cover Venezuela’s urgent requirements. Of the Shintec product, 6,000 tonnes are scheduled for shipment in November and 3,000 tonnes in December, Venezuelan sources said.

Industry participants said the imports from Colombia and the US are priced at approximately $1,160/tonnes CFR (cost & freight), with cash-before-shipment payment terms for the Colombian material. Pequiven intends to price the imported resin in the local market at a small margin, basically to cover its costs, with on-sight payment terms.

PVC produced by Pequiven continues to be sold to the domestic market at the assessed level of $737–750/tonne DEL (delivered) for pipe-grade. Once imported material begins to sell in Venezuela, the above assessed prices will be revised accordingly.

Domestic resin remains tight, with private industry receiving 80% of normal requirements, since Pequiven is delivering around 2,700 tonnes/month for the construction of subsidized low-cost housing with a high PVC content, called petro-casas.

According to government projections, Pequiven’s contribution to the petro-casas will gradually increase through 2012. By 2013, all of Pequiven’s PVC production will be assigned to the petro-casas. As resin deliveries for petro-casas increase, Pequiven’s sales of domestic resin to private industry will proportionately decline.

($1 = €0.72)

For more on PVC visit ICIS chemical intelligence

By: Ron Coifman
+1 713 525 2653

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