27 July 2012 22:54 [Source: ICIS news]
HOUSTON (ICIS)--A polyvinyl chloride (PVC) producer in Brazil is proposing a 10% price increase for August on rising production costs, market sources said on Friday.
Although participants are aware that upward pressure from raw materials and thin margins are driving the producer’s initiative, buyers are resisting the hike, citing weak demand in a soft economy.
Participants, however, are projecting rising PVC consumption in the second half of 2012 on seasonality, because September, October and November are usually the best demand months throughout the Brazilian economy.
July PVC prices are assessed at $1,330-1,500/tonne (€1,077-1,215/tonne) DEL (delivered) for pipe grade, flat from June, while prices in other Latin American countries dropped this month.
PVC producers in Brazil are Braskem and Solvay.
($1 = €0.81)
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