US PVC export prices move higher on availability concerns
13 September 2013 17:26 [Source: ICIS news]
HOUSTON (ICIS)--US polyvinyl chloride (PVC) export prices moved up by 5 cents/lb ($110/tonne, €83/tonne) as producers targeted higher offers on the back of higher feedstock prices and limited availability following scheduled turnarounds at more than one production facility in the US.
Export prices are assessed by ICIS at $955-970/tonne FOB (free on board) US Gulf.
Upcoming planned outages at ?xml:namespace>US plants Oxy Vinyls, Shintech and Formosa starting in late September and October would further tighten US supply and limit export availability, a trader said.
In Brazil, sources said that US PVC is being offered at $970/tonne FOB US Gulf.
Traders offered end-September and October loading cargoes to the Middle East for $1,030-1,050/tonne CFR (cost and freight) GCC (Gulf Cooperation Council) for October shipment.
However, deals concluded were limited as a number of converters and traders were said to have covered their purchase requirements until mid-October.
A different US seller offered cargoes for $1,060/tonne CFR GCC for October shipment. The seller said it looked to maintain its offers despite the prevailing weak buying interest because of the limited availability of October lots.
US PVC was offered in Europe at $1,030/tonne CFR, a trader said.
US suppliers provided limited volumes to China this week, citing firm costs. Some offers were heard at $1,010/tonne CFR CMP (China Main Port).
Offers made for October-loading deep-sea cargoes were met with limited responses in the Asia Pacific region, according to market participants.
Several Asia buyers expect larger volumes at the end of the year because the annual US inventory taxes are expected to take effect then, leading many US-based PVC suppliers to release their spot cargoes to alleviate inventory pressure and reduce taxation levels.
Major US producers of PVC include Axiall, Occidental, Formosa, Shintech and Westlake.
($1 = €0.75)By: Heather McGuire Doyle+1 713 525 2653
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