Venezuela currency devaluation to hit PVC prices next week

14 February 2013 22:58  [Source: ICIS news]

HOUSTON (ICIS)--New price lists for polyvinyl chloride (PVC) adjusted in line with the devalued Venezuelan bolivar are expected to emerge next week, local sources said on Thursday.

Venezuelan PVC prices, which are set at official rates established by the government, are being quoted in the domestic market this week at the same prices from before the currency devaluation that took effect on 13 February, sources said.

Industry participants said volumes offered were limited, although resin inventories at PVC producer and distributor Pequiven were heard to be ample.

The bolivar (Bs) currency was devalued on 13 February from Bs4.3/$1 to Bs6.3/$1, following the announcement on 8 February immediately before the start of the Carnival holiday.

Pequiven’s prices for imported resin stand at $1,609/tonne (€1,191/tonne) DEL (delivered) for pipe grade and general-purpose grade, with domestic resin priced at $737/tonne DEL for pipe grade and $788/tonne DEL for general purpose.

The price assessments pro-rate the PVC mix sold to private industry at 25% imported to 75% domestic for pipe grade, and at 80% imported to 20% domestic for general purpose.

Meanwhile, President Hugo Chavez’s health and Venezuela’s political outlook continue to be sources of speculation, as he remains under medical treatment in Cuba.

($1 = €0.74)

By: Ron Coifman
+1 713 525 2653

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