Feedstocks push up US PVC export spot prices

19 June 2008 22:12  [Source: ICIS news]

HOUSTON (ICIS news)--US polyvinyl chloride (PVC) export spot prices surged this week due to feedstock cost pressure and growing seasonal demand, sources said on Thursday.

PVC export spot deals were heard done as high as $1,185/tonne (€758/tonne) FOB (free on board) US Gulf this week, with most deals falling within the $1,160-1,180/tonne range.

Those prices are up from last week’s assessment of $1,070-1,100/tonne FOB US Gulf, according to global chemical market intelligence service ICIS pricing.

Producers and traders said global demand for vinyl products has strengthened amid an increase in construction activity, but the main driver is rising prices for feedstock ethylene, a commodity closely linked to the surging energy complex.

Since the US housing market financial crisis brought a sharp downturn in US home construction - and with it demand for vinyl construction materials - US PVC producers have looked to overseas markets to improve sales.

Producers are now exporting as much as 20% of the PVC produced in the US and have solicited buyers in such disparate locations as Brazil, Australia, India and Turkey, sources said.

US PVC producers include Westlake, Occidental Chemical, Shintech, Georgia Gulf and Formosa Plastics.

($1.00 = €0.64)

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Author: Greg Holt
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