03 December 2013 23:45 [Source: ICIS news]
HOUSTON (ICIS)--Polyvinyl chloride (PVC) market participants in Venezuela are starting vacations early because of the shortages in the resin as well as upcoming regional and city elections, suspended school classes and a recent blackout that left a majority of the country without power, local sources said on Tuesday.
Vacations in various industries in the country usually start around mid-December and last through mid-January. However, many participants have advanced the yearly break because of deteriorating working conditions and a bleak market outlook.
PVC processors are facing great challenges to keep operating because of a marked resin shortage, local industry participants said.
Retail prices are controlled, with the government mandating that many items are to be sold at domestic prices corresponding to the official exchange rate for the dollar. However, the informal market is trading the US dollar at approximately ten times the official rate of bolivares 6.30 to the dollar.
Local producer Pequiven’s domestic PVC is assessed at $496/tonne (€367/tonne) DEL (delivered) for pipe grade and at $520/tonne DEL for general-purpose grades. Imported resin is gauged at $1,627/tonne DEL for both pipe grade and general purpose (GP).
($1 = €0.74)
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