03 June 2013 05:44 [Source: ICIS news]
SINGAPORE (ICIS)--Producers of polyvinyl chloride (PVC) in the Gulf Cooperation Council (GCC) have increased their offers for June shipments by $60-100/tonne (€46-77/tonne) from May prices, market sources said on Monday.
According to sources, the producer had overbooked its cargoes in May, which brought about a shortage in the availability of June-shipping cargoes, leading to higher prices.
Offers in the United Arab Emirates (UAE) market were at $1,060/tonne DEL (delivered) UAE for June lots, up from $1,000/tonne DEL UAE for May-loading cargoes.
June offers to other countries in the GCC region were estimated at $1,060-1,070/tonne DEL GCC for GCC-origin cargoes.
This sharp increase in June prices comes after the producers dropped their May offers by $60-70/tonne to match lower Asian and US cargo offers to the region.
In the East Mediterranean (East Med) region, GCC-origin cargoes were offered at $1,110-1,120/tonne DEL East Med, $90-100/tonne higher than May levels.
According to some Jordan-based importers, converters who booked GCC-origin cargoes during the week received confirmation for half of the volumes they booked, given a shortage in availability of cargoes because of excess booking in May.
East Med converters deemed the offer prices to be competitive, as compared with Asian and US cargoes offered to the region, but said they would have to now consider purchasing from the US and Asia given the limited availability from GCC.
GCC producers’ offers are quoted on a DEL basis that include all the costs incurred in delivering the cargoes to the customer’s facility. These cargoes also come with attractive payment terms like open credit and have much shorter delivery time.
Imported cargoes, on the other hand, are quoted on a CFR basis and are subject to an additional cost of around $50/tonne for port clearing, financing and land freight. Cargoes shipped from the US have an approximate voyage time of one and a half months.
($1 = €0.77)
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