Venezuela PVC prices fall on greater availability of local resin

20 January 2012 00:07  [Source: ICIS news]

HOUSTON (ICIS)--Polyvinyl chloride (PVC) prices in Venezuela declined because state-producer Pequiven is selling more cheaper domestically produced resin to private industry, local industry sources said on Thursday.

The mix that Pequiven is selling to private industry has changed to 70% domestic and 30% imported from 60% domestic and 40% imported material.

Prices for domestic PVC in January are stable at December levels at $737/tonne (€575/tonne) for domestic pipe grade and $788/tonne for domestic general purpose. Imports are also stable at $1,463/tonne for both grades.

As a result of the greater share of cheaper domestic product in the mix, average domestic PVC prices in January are assessed lower at $955/tonne DEL (delivered) for pipe-grade and $991/tonne DEL for general purpose.

December PVC prices stood at $1,027/tonne DEL for pipe-grade and $1,058/tonne DEL for general purpose.

More domestically produced resin is being sold to private industry because the nation's low-cost subsidised housing project is advancing at slower than projected rates. The government prioritises the cheaper domestic resin to its so-called petrocasas programme.

Eventually, the petrocasas project will consume all of the domestic PVC as production of the houses ramps up, and private industry will only be able to purchase imported resin.

Pequiven is planning PVC imports around April-May, but the volumes, sourcing or pricing being considered were not disclosed.

($1 = €0.78)

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By: Ron Coifman
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