17 August 2012 22:03 [Source: ICIS news]
HOUSTON (ICIS)--The domestic polyvinyl chloride (PVC) producer in Mexico and exporters from the US announced price increases for September material, because of rising feedstock costs, tight supply and strengthening demand, local sources said on Friday.
The local producer is proposing a 4 cent/lb ($88/tonne, €71/tonne) hike, while exporters’ initiatives vary in a 3-5 cent/lb range, sources in Mexico said.
Although PVC buyers are projecting higher prices in September, it is too early to determine whether the proposed increases will be implemented in full or partially, according to sources.
Meanwhile, material remains tight as consumers attempt to buy resin and build inventories before the September hikes are implemented, participants said.
Participants noted that demand improved because of current inventory restocking after PVC prices stopped falling. Resin prices dropped by 2 cents/lb in July and by 4 cents/lb in June.
Pipe-grade PVC prices for August in Mexico's domestic market are assessed as flat from July at $1,045-1,095/tonne DEL (delivered).
The domestic producer in Mexico is Mexichem.
($1 = €0.81)
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