US PVC Nov contracts roll over while spot, export prices rise

08 December 2012 00:19  [Source: ICIS news]

HOUSTON (ICIS)--US November polyvinyl chloride (PVC) contracts rolled over, while spot and export prices rose, market sources said on Friday.

Pipe-grade PVC for November is assessed by ICIS at 57-62 cents/lb ($1,257-1,367/tonne, €968-1,053/tonne) while general purpose PVC is assessed at 59-64 cents/lb.

US spot prices rose by 1 cent on each side of the range, reaching 43-47 cents/lb.

Export prices rose by $20/tonne, reaching $890-920/tonne FOB (free on board).

The increase came as plant outages, both planned and unplanned, constricted supply even as domestic demand remained steady

Meanwhile, US vinyls producer Georgia Gulf announced a 3 cent/lb increase for contracts, effective on 1 January or as contracts allow. The company cited tightening supply and steady demand as reasons for the increase.

Export availability from the US has been limited because of the increased demand from reconstruction following Hurricane Sandy, according to market sources.

Among the production issues heard during the week, Shell declared force majeure on ethylene, a primary feedstock of ethylene dichloride (EDC), after shutting down a segment of a pipeline in Louisiana because of a leak.

The company did not provide details on the length and depth of the restriction.

PPG Industries had regained operating rates at its chlor-alkali complex in Lake Charles, Louisiana, following an outage that began on 28 November. Chlorine is a feedstock for PVC.

The company said the outage was caused by a major generator transformer failure and that the plant resumed partial operations on 30 November. Power generation continues to be impacted by damaged electrical equipment, the company said.

Major US producers of PVC include Formosa, Georgia Gulf, OxyVinyls, Shintech and Westlake.

($1 = €0.77)

Follow Ken Fountain (@ICIS_Ken) on Twitter

By: Ken Fountain

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