02 August 2013 14:29 [Source: ICIS news]
SINGAPORE (ICIS)--The producer of polyvinyl chloride (PVC) in the Gulf Cooperation Council (GCC) maintained its offers for August shipments unchanged from July prices, market sources said on Friday.
Offers for the producer’s cargoes in the United Arab Emirates (UAE) market were at $1,120/tonne (€851/tonne) DEL (delivered) UAE for August loading cargoes, stable from its prices for July shipments.
August offers to other countries in the GCC region were estimated at $1,120-1,130/tonne DEL GCC for these cargoes.
While some regional traders deemed the prices to be higher than US cargoes offered to the region, others were heard to consider purchasing the cargoes on account of shorter voyage times compared to US cargoes and open credit terms.
To the eastern Mediterranean market of Jordan, the producer was heard to have offered at $1,120-1,130/tonne DEL Jordan, the same as its offers to the GCC markets.
Importers in the eastern Mediterranean markets deemed the offers as comparable to selling indications of European and US August-loading cargoes. However, deals concluded during the week were largely limited owing to weak buying sentiment because of Ramadan.
Discussions for August-loading cargoes in both GCC and East Med markets are likely to gain momentum after the Eid-ul-Fitr celebrations in the region on 8-9 August, when firm offers of US and European cargoes are expected.
The GCC producer's 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 a much shorter delivery time.
Imported cargoes, on the other hand, are quoted on a cost & freight (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 = €0.76)
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