US July PVC contract prices roll over on feedstock

03 August 2012 22:16  [Source: ICIS news]

A PVC pipe sculptureHOUSTON (ICIS)--July contract prices for US polyvinyl chloride (PVC) rolled over after spot prices reached a floor, due to falling costs for feedstock ethylene, sources said on Friday.

Pipe-grade PVC was assessed by ICIS at 51.00-55.00 cents/lb ($1,124-1,213/tonne, €922-995/tonne), and general-purpose PVC was assessed at 53.00-58.00 cents/lb.

During the week, several US producers announced price-increase initiatives of 3 cents/lb and 5 cents/lb beginning on 1 September or as contracts allowed. Producers have cited rebounding ethylene costs and steady demand as the reasons for the increases.

Westlake is seeking a 5 cent/lb increase, effective on 1 September and Georgia Gulf is seeking a 3 cent/lb increase, also effective on 1 September.

Another producer, Shintech, confirmed that it has announced a 3 cent/lb increase, effective on 1 September, and an additional 2 cent/lb increase, effective on 1 October.

One trader said there was a strong likelihood that the initiatives would be implemented.

($1 = €0.82)

Follow Ken Fountain on Twitter (@ICIS_Ken)

By: Ken Fountain

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