Venezuelan PVC prices rise on imported resin

19 July 2012 21:58  [Source: ICIS news]

HOUSTON (ICIS)--Polyvinyl chloride (PVC) prices in Venezuela moved up to $955/tonne (€783/tonne) delivered (DEL) for pipe grade and $993/tonne DEL for general purpose, from $911/tonne DEL and $952/tonne DEL, respectively, because more of the expensive imported material is included in the resin mix sold to private industry by local producer Pequiven, sources said on Thursday.

The resin mix sold in the country changed to 75% domestic/25% imported from 80% domestic/20% imported.

Pequiven previously imported PVC at international prices, and is selling it at $1,609/tonne DEL for pipe grade and general purpose. Pequiven-produced resin is sold at $737/tonne DEL for pipe grade and $788/tonne DEL for general purpose. PVC prices are controlled by the government.

Local sources said that availability of the resin produced by Pequiven tightened with a three-day plant outage over the past weekend. Pequiven’s PVC operating rates are getting back to normal as clean-up operations related to the outage are being finalised.

The subsidised housing project that utilises substantial PVC volumes for structural and non-structural parts of its petrocasas is also contributing to snug resin supply, participants said.

Negotiations for a new round of 16,500 tonnes of PVC imports from three suppliers are close to concluding, regional sources said. Venezuela is importing the resin from one Colombian and two US producers, with approximately 10,000 tonnes expected to arrive in August, and the balance in September and October, sources said.

Purchase prices of the resin imports or the expected domestic sales prices were not disclosed.

Sources noted discomfort about heavy traffic, inefficiencies and extended delays at Puerto Cabello and La Guaira, main ports receiving cargoes from offshore suppliers.

($1 = €0.82)

By: Ron Coifman
+1 713 525 2653

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