02 August 2012 23:57 [Source: ICIS news]
HOUSTON (ICIS)--The domestic polyvinyl chloride (PVC) producer in Mexico proposed a $20-40/tonne (€16-33/tonne) hike for general-purpose grade and a rollover for pipe-grade resin, market sources said on Thursday.
The outlook for domestic prices in Mexico in August is in line with various initiatives from US exporters, participants said.
At the end of July, a US producer proposed increases for August in Mexico at 3 cents/lb and another US supplier at 1-2 cents/lb, sources said.
Market participants in Mexico said that the local PVC producer initially offered increases in a similar range of 2-3 cent/lb.
However, the initiatives were dampened when a US supplier rolled over PVC prices from July to August for the Mexican market, and the domestic resin producer decided to remain competitive, the sources said.
Demand has risen in Mexico because PVC consumers are increasing resin stocks on concerns about higher prices, following the period when processors maintained lean inventories as prices declined, according to local participants.
Pipe-grade PVC prices in Mexico are assessed for July at $1,045-1,095/tonne DEL (delivered).
General-purpose grade is assessed at $1,115-1,165/tonne DEL.
The domestic producer in Mexico is Mexichem.
($1 = €0.82)
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