21 June 2013 22:53 [Source: ICIS news]
HOUSTON (ICIS)--US chlor-alkali producer Shintech on Friday announced a 2 cents/ lb ($44/tonne, €33/tonne) increase for polyvinyl chloride (PVC), to take effect 1 August or as contracts allow.
Shintech’s move followed a similar announcement by Occidental Chemical made earlier in the week. Both companies had previously announced 2 cents/lb increases for July contracts. Other producers had already announced increases for June contracts.
May contract prices for pipe-grade PVC are assessed by ICIS at 63.00-68.00 cents/lb, while general purpose contract prices are assessed at 65.00-70.00 cents/lb.
Producers have cited steady demand, both for domestic and export consumption, as well as snugness in supply caused by outages earlier in the year, as reasons for the price initiatives.
Another factor that may have played a role in the most recent announcement was the 13 June explosion at an ethane cracker operated by Williams in Geismar, Louisiana. The incident caused two deaths and numerous injuries.
The cause of the incident remains under investigation, and no timetable has been given regarding the plant’s return to operations.
Spot and export PVC prices were unchanged during the week, as little new activity was noted by market participants.
Major US producers of PVC include Axiall, Formosa, Occidental Chemical, Shintech and Westlake.
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