22 January 2013 17:30 [Source: ICIS news]
HOUSTON (ICIS)--Polyvinyl chloride (PVC) price increase negotiations in Mexico for February business are concluding at a 3 cent/lb rise, driven by tight resin supply, reduced feedstock availability and strong demand throughout the Americas, sources in Mexico said on Tuesday.
The local producer Mexichem originally had proposed a 4 cent/lb increase for February, but discussions are settling at a 3 cent/lb hike, the sources said.
PVC domestic prices in Mexico rose by as much as 3 cents/lb ($66/tonne, €50/tonne) in January from December, on support from regional market dynamics, tight supply and hike initiatives from the local producer and US exporters.
January PVC prices in Mexico are assessed at $1,060-1,110/tonne DEL (delivered) for pipe-grade.
Participants in Mexico had noted concern about US producer PPG’s declaration of force majeure on feedstock vinyl chloride monomer (VCM) at its complex in Lake Charles, Louisiana, after a fire on 24 December, resulting in Mexichem’s declaration of force majeure on PVC produced in Mexico.
However, PPG and Mexichem are making progress toward normalisation of their respective VCM and PVC production, sources in Mexico said on Tuesday.
PVC supply remains snug in North America, but availability in Mexico is expected to normalise by the end of January, sources said.
Mexichem is the PVC producer in Mexico.
($1 = €0.75)
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