04 January 2013 17:58 [Source: ICIS news]
HOUSTON (ICIS)--US chlor-alkali producer Westlake has announced a 5 cent/lb ($110/tonne, €85/tonne) increase for polyvinyl chloride (PVC) contracts in February, market sources confirmed on Friday.
A company source said that the rising cost of primary feedstock ethylene was the primary reason for the price initiative.
Westlake's announcement joins a move by Georgia Gulf to move a previously announced 3 cent/lb increase from January to February contracts. A company source said that was done because the earlier announcement did not receive sufficient support from the market.
Another producer reportedly also announced a 3 cent/lb increase for February, but this has not been confirmed.
In addition to feedstock costs, producers have cited healthy domestic demand and tightening supply after a series of fourth-quarter 2012 outages, both planned and unplanned.
Pipe-grade PVC is assessed by ICIS at 57-62 cents/lb, and general purpose PVC is assessed at 59-84 cents lb.
Major US producers of PVC include Georgia Gulf, Formosa, OxyVinyls, PPG Industries, Shintech and Westlake.
($1 = €0.77)
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