07 September 2012 22:56 [Source: ICIS news]
HOUSTON (ICIS)--US polyvinyl chloride (PVC) contracts for August rolled over, while spot and export prices rose during the week, as outages caused by Hurricane Isaac has tightened supplies, market sources said on Friday.
The contract price for pipe-grade PVC is assessed at 51-56 cents/lb ($1,124-1,235/tonne, €888-976/tonne), while general purpose PVC is assessed at 53-58 cents/lb.
Several US PVC producers have operations on the US Gulf coast, particularly in Louisiana, where Hurricane Isaac made landfall on 28 August. Although reportedly there was minimal damage, the facilities that were shut down remained off line for a period of days, constricting supplies.
Westlake had confirmed it had shut down its operations in Geismar.
Market sources said other companies had shut down plants, but this was not confirmed with the producers.
Spot prices are assessed at 42-46 cents/lb, while export prices are assessed at $920-950/tonne.
Several producers have announced price hikes of 3-5 cents/lb, effective on 1 September or as contracts allow.
Producers have cited the rising cost in recent weeks of feedstock ethylene and increased demand, particularly in the export market, and planned outages later in the third quarter, as reasons for the proposed increases.
While buyers had some resistance to an earlier set of price initiatives, the tightening supply should lend support to the latest round, according to market sources.
($1 = €0.79)
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