28 June 2013 20:38 [Source: ICIS news]
HOUSTON (ICIS)--Initial indications for July polyvinyl chloride (PVC) in Latin America point to rising prices, driven by firming markets in Asia, according to input from regional sources on Friday.
Latin America is taking the cue from the $30-40/tonne PVC price increases announced by Taiwanese PVC producer Formosa Plastics Corp (FPC) for July shipments.
Market direction for July has not yet fully emerged in all Latin American countries. However, PVC price increases are being proposed at $100/tonne for the domestic market in Argentina and at about $30-50/tonne for export product from Colombia and Mexico, depending on destination.
Although no pricing announcements have surfaced in Mexico for July PVC, participants are talking of potential 2.5-3.0 cent/lb ($55-66/tonne) increase proposals for domestic and for imported resin. Buyers said that any hike initiatives would still be subject to negotiation.
June PVC prices in Latin America were flat from May, amid restrained purchases and controlled inventories. Demand in Argentina and Brazil has been further restricted because the corresponding governments have reduced public spending and implemented anti-inflationary policies.
PVC domestic prices in Colombia for June were assessed at $1,200/tonne (€924/tonne) DEL (delivered) for pipe grade.
PVC producers in Latin America are Braskem, Solvay and Mexichem.
($1 = €0.77)
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