30 August 2012 21:02 [Source: ICIS news]
HOUSTON (ICIS)--Market participants in Mexico are counting on full implementation of Mexichem’s 4 cents/lb ($88/tonne, €70/tonne) increase proposed for domestic PVC sales for September on high feedstock costs, local sources said on Thursday.
Additionally, firm resin prices in the US and concerns about production or logistics complications that could develop from the effects of Hurricane Isaac in the US Gulf support the initiative, sources said.
US PVC exporters into Mexico also have announced 4 cent/lb hikes for September.
Sources in Mexico said PVC availability was adequate following a period of snug supply, when buyers were building inventories in anticipation of price increases.
PVC stocks in Mexico had thinned by July, as consumers waited for declining prices to reach bottom before buying resin. Processors accelerated purchases on expectations of rebounding PVC prices.
August PVC prices in Mexico’s domestic market are flat from July for pipe grade, but rose by $30/tonne for general purpose.
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 = €0.80)
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