21 September 2012 17:46 [Source: ICIS news]
HOUSTON (ICIS)--October polyvinyl chloride (PVC) prices are poised to rise in Mexico because of the domestic producer’s proposed 5 cent/lb increase and support from rising feedstock costs, sources said on Friday.
Participants said it remains unclear if the initiative will be fully or partially successful, but maintained that the PVC market in Mexico will be firming in October, driven by higher feedstock ethylene prices, rising PVC prices in the US and other regions and snug US supply.
Improving performance in the neighbouring US housing market is contributing to firming sentiment in the region, according to sources.
However, participants cautioned that moderate import demand from China for US or Mexican resin, the upcoming National Day holidays in China in the first week of October and the destocking that occurs towards year end may eventually place a damper on North American resin business.
The initiative for October follows a 4 cent/lb ($88/tonne, €68/tonne) hike implemented this month.
Pipe-grade PVC prices for September in Mexico’s domestic market are assessed at $1,130-1,180/tonne DEL (delivered)
The domestic producer in Mexico is Mexichem.
($1 = €0.77)
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