10 September 2012 20:29 [Source: ICIS news]
HOUSTON (ICIS)--US vinyls producer Shintech has increased a previously announced 2 cent/lb ($44/tonne, €34/tonne) hike for polyvinyl chloride (PVC) to 5 cents/lb, effective on 1 October or as contracts allow, a company source said Monday.
The October price initiative joins a previously announced increase of 3 cents/lb, effective on 1 September, according to the company.
Pipe-grade PVC is assessed by ICIS at 51.00-56.00 cents/lb, and general-purpose PVC is assessed at 53.00-58.00 cents/lb.
The source did not provide a reason for the increase.
However, Shintech’s PVC facilities in Louisiana were off line for several days following Hurricane Isaac, constricting supplies, market sources said. Also, the cost of primary feedstock ethylene has risen in the past several weeks.
Shintech did not immediately respond to a request for comment.
Shintech is one of several US PVC producers, including Westlake and Georgia Gulf, that have announced increases of 3-5 cents/lb for September. Along with feedstock costs, the producers have cited increased demand, both domestic and abroad, for the price initiatives.
One buyer said it was ambivalent about the announcement.
“I don’t think right now is the right time for a price increase. [Producers] will try to push it through, but I don’t think it will stick,” the buyer said.
($1 = €0.78)
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