Argentina import restrictions likely to push up PVC prices

04 February 2012 00:09  [Source: ICIS news]

HOUSTON (ICIS)--The polyvinyl chloride (PVC) market in Argentina will probably absorb a $50-80/tonne (€38-61/tonne) hike in February for domestic resin on an $80/tonne hike initiative, because buyers have no alternative as a result of new import measures that will delay entry of fresh material, sources said on Friday.

The government has issued new laws to restrict imports and improve Argentina’s trade balance, which although currently favourable, has been deteriorating from year to year, according to local sources.

The new requirement is the Early Sworn Declaration of Imports (DJAI), in effect since 1 February.

Although some sources suggest the new law may place obstacles to the smooth running of industry, others say that the new procedures should not generate conflict, depending on how the measures are applied.

Importers recommend that the trade balance should be improved by promoting exports and industrial development, rather than by restricting imports that could result in production stoppages if the arrival of raw materials is delayed.

In a meeting between government officials, the Argentinean government has assured concerned Brazilian businessmen that the DJAI will not hurt industry of Argentina’s Mercosur partner, and that “there will be solutions”, according to media reports.

January PVC domestic prices in Argentina are assessed at $1,320-1,470/tonne DEL (delivered) for pipe-grade, according to ICIS.

($1 = €0.76)

By: Ron Coifman
+1 713 525 2653

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