07 February 2014 23:18 [Source: ICIS news]
HOUSTON (ICIS)--February polyvinyl chloride (PVC) prices in Venezuela are flat from January amid balanced-to-snug supply, local sources said on Friday.
PVC demand is strong as processors build inventories after an extended period of resin shortage at the end of 2013. Local producer Pequiven’s PVC plant is running normally, while regularised resin imports are contributing to improved availability, sources said.
However, participants noted some erratic resin shipments that arrived off-schedule or not in line with the volumes requested.
PVC is being sold to private industry in a mix of 75% domestic resin and 25% imported.
The average domestic price for either pipe-grade or general purpose (GP) is gauged at $1,568/tonne DEL (delivered), with Pequiven’s list prices of domestic PVC at $1,548/tonne DEL and of imported resin at $1,627/tonne DEL.
The spread between the prices of domestic and imported material has narrowed significantly, reducing the previous strong preference for the much cheaper domestic resin. In December, Pequiven’s scarce domestic PVC was selling at $496/tonne DEL for pipe grade and at $520/tonne DEL for GP grades, and imported resin at $1,627/tonne DEL for both pipe and GP grades.
Other related products and additives remain scarce, however, because of red tape to obtain import licences and to purchase foreign currency.
Although the official exchange rate is Venezuelan bolivars (Bs) 6.30/$1, importers can buy US dollars auctioned by the Central Bank at about Bs12.30/$1. Additionally, US dollars are currently offered in the parallel market at above Bs80/$1.
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