Latin America PVC pressured higher on rising demand, tight supply

24 February 2012 18:47  [Source: ICIS news]

HOUSTON (ICIS)--Latin American polyvinyl chloride (PVC) markets are facing upward pressure because of tighter supplies of resin and feedstocks amid rising demand, industry sources said on Friday.

PVC demand in Latin America is increasing because of seasonality after slow January and February activity and also because of concerns about short supply, sources said.

Meanwhile, the availability of exports was said to be tighter because of PVC plant turnarounds in the US, although no plants were specified.

Additionally, the gradually improving economy is pushing up PVC demand in the US, while substantial volumes are being heard shipped from North America to Asia and other regions.

Availability of feedstock ethylene continues to tighten because of ongoing and pending cracker turnarounds in the US.

Insufficient vessel availability and higher freight costs are also contributing to tighter resin supply in Latin America, regional participants said.

In Mexico, March offers were heard at an increase of 3 cents/lb ($66/tonne, €50/tonne) from US exporters and $70/tonne from the domestic producer, with February prices assessed at $1,060-1,110/tonne for pipe-grade, according to ICIS.

In Colombia, participants are projecting $40-60/tonne price increases for March in the domestic PVC market, in line with projections throughout the Americas.

Indications for March surfaced throughout the region except in Venezuela, where the government controls resin prices offered from the domestic supplier.

($1 = €0.75)


By: Ron Coifman
+1 713 525 2653



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