16 December 2013 08:51 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwan’s Formosa Plastics Corp (FPC) hiked its offers for January-lifting polyvinyl chloride (PVC) cargoes by $20/tonne (€15/tonne) compared with December prices, sources close to the company said on Monday.
The major PVC maker has announced to customers that prices for cargoes bound for China, southeast Asia and India were increased to $1,060/tonne on a cost-insurance-and-freight (CIF) basis, tracking steady gains in the cost of feedstock ethylene, they said.
FPC’s offers to other markets on a free-on-board (FOB) basis were not immediately available.
On 25 November, its offers for December-lifting parcels were at $990/tonne FOB.
A discount of $10/tonne usually applies to payments made on a letter-of-credit (LC) at-sight basis and for bulk purchases of 1,000 tonnes and above of FPC cargoes, market sources said.
In terms of volumes, FPC will export 60,000 tonnes of spot PVC for January, down from 65,000-70,000 tonnes of December-lifting cargoes.
Most market players consider the price increase fair, taking into account the feedstock cost pressure being faced by regional chlor-alkali makers.
At midday, ethylene prices stood at $1,420-1,440/tonne CFR (cost and freight) NE (northeast) Asia, according to ICIS.
($1 = €0.73)
Additional reporting by Stephanie Zhang
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