25 May 2012 19:17 [Source: ICIS news]
HOUSTON (ICIS)--PVC availability has tightened in Venezuela because domestic producer Pequiven has stopped making resin as a result of a longer-than-expected plant maintenance shutdown, local sources said on Friday.
Imported material is starting to arrive in limited amounts by truck but is not yet readily available for delivery, sources said.
Pequiven had planned to conduct one week of maintenance work at its Zulia plant beginning about 7 May, sources said, but the job is now expected to be completed by 2 June as a result of unforeseen circumstances. The plant has a capacity of 120,000 tonnes/year, according to the company website.
Although imported pipe-extrusion and general purpose grades of PVC are priced in Venezuela at $1,609/tonne (€1,287/tonne) DEL (delivered), according to sources, the ratio of imported and cheaper domestic resin to be sold to local processors has not yet been established.
As a result, the corresponding prorated price of the resin mix is unclear.
Until imported material is available to consumers, PVC prices in Venezuela are assessed at the domestic level. The domestic resin produced by Pequiven was being sold at government controlled prices of $737/tonne DEL for pipe grade and $788/tonne DEL for general purpose.
Pequiven has scheduled 4,000-5,000 tonnes/month of PVC imports, purchased at international prices from two US suppliers and one Colombian, to arrive May, June, July and August, sources said. PVC from Colombia has started to arrive by land.
The imported PVC, supplied to private industry, is expected to continue rising as more of the cheaper domestic resin is targeted to the subsidised petro-casas housing project on approach of the presidential elections in October.
Petro-casas use a large amount of PVC.
Industry activity in Venezuela has weakened because of the uncertainties resulting from President Hugo Chavez’s illness and the presidential elections in October.
($1 = €0.80)
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