22 February 2013 22:54 [Source: ICIS news]
HOUSTON (ICIS)--February contract prices for polyvinyl chloride (PVC) were assessed higher, as market participants said a round of price initiatives by producers had been implemented.
Meanwhile, participants continue to negotiate another set of price hikes for March contracts.
Pipe-grade PVC was assessed at 57-62 cents/lb ($1,257-1,367/tonne, €955-1,039/tonne), while general purpose PVC was assessed at 62-67 cents/lb.
A force majeure declared by US producer Westlake on all resin products, including PVC, remains in effect for February and March shipments. The company cited production issues at its vinyl chloride monomer (VCM) facility in Geismar, Louisiana, that began during planned maintenance. It is unknown how long the force majeure will remain in effect.
The Westlake situation further tightened an already tight supply for PVC on the spot and export market, which has seen low availability for several weeks, according to market sources.
In recent weeks, all major US producers of PVC announced new price initiatives of 5 cents/lb for March, which were on top of the previous announcements for February. Those proposals remain under discussion, sources said.
Major US producers of PVC include Axiall, Formosa, Occidental, Shintech and Westlake.
($1 = €0.76)
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