13 April 2012 17:36 [Source: ICIS news]
HOUSTON (ICIS)--Shintech proposed on Friday a 2 cent/lb ($44/tonne, €34/tonne) increase on US polyvinyl chloride (PVC), effective on 1 May.?xml:namespace>
The company did not immediately provide a basis for the increase.
The move follows several similar price initiatives made by producers for March contracts, which have not fully taken hold, according to market sources.
A source at one major buyer of PVC said he believed Shintech made the move on anticipation of stronger demand going into the spring and summer homebuilding season, plus several planned outages.
But, the source said, buyers are likely to resist the increase, noting that the earlier ones were not fully implemented. Demand may not be as strong as producers believe, the source said.
“They’re going to have a battle,” the source said.
Contract prices for pipe-grade PVC are assessed by ICIS at 56.50-61.50 cents/lb. General-purpose PVC is assessed at 58.50-63.50 cents/lb.
Major US PVC producers include Formosa Plastics, Georgia Gulf, Shintech, Occidental Chemical (OxyVinyls) and Westlake.
($1 = €0.76)
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