Updated to mid-November 2009
Asian market review by Hunwei Ng, ICIS pricing
Asian polyvinyl chloride (PVC) prices declined 10% to $800-830/tonne CFR (cost and freight) CMP (China Main port) from mid-August to mid-October, then rebounded 3% thereafter to $820-860/tonne CFR CMP in mid-November.
Slowing demand and rising domestic production contributed to the price decline. Surging feedstock values, particularly for ethylene, contributed to the price rebound.
European market review by Stephanie Wilson, ICIS pricing
Volatile availability in the European PVC market continued to govern prices over the period mid-September to mid-November, with only a fleeting improvement in demand noted.
Producers’ bids to increase prices were supported by several large force majeures, spanning a total output of 2.3m tonne/year, rising feedstock costs and low operating rates, which continued to be driven by tumbling caustic soda (the co-product of upstream chlorine) values.
However, sentiment began to change as aggressively priced US imports penetrated the market, while domestic production issues were resolved. This improved availability, coupled with lower ethylene costs, drove PVC buyers to push for decreases in October and November.
As a result, PVC domestic prices lost €15-30/tonne from their peak of €990-1,010/tonne FD (free delivered) in October, with Iberia already showing falls of €50/tonne for November business. The sensitive spot market also registered falls of €150-180/tonne.
Meanwhile, buying interest in the Turkish market was largely flat as consumers postponed purchases over Ramadan and the Chinese national holiday. Prices were showing some sign of recovery by late October, but progress was slow.
US market review by Judith Taylor, ICIS pricing
In August and September, PVC suppliers sought increases in the US of 3 cents/lb ($66/tonne) and 2 cents/lb, respectively, on both pipe grade and general purpose resins.
The hikes were based on higher chlorine and ethylene costs, as both feedstock prices rose during the third quarter.
Buyers resisted both initiatives, claiming weak PVC demand and inability to pass along increases to end use segments.
August/September negotiations yielded a split settlement of 1.5 cents/lb for each month. The 2 cents/lb September increase moved to a TVA (Temporary Voluntary Allowance). September’s assessment was 63-65 cents/lb for pipe and 67-69 cents/lb for general purpose PVC.
Contracts moved at a rollover between September and October.
Most US producers of PVC have announced a 3 cents/lb increase effective 1 November based upon feedstock and operating costs.
Latin American market review by Judith Taylor, ICIS pricing
Between August and early November, Latin American PVC prices ricocheted in several countries.
Most specifically, in Mexico the government removed 15-year-old anti-dumping duties on US PVC, opening the door for rapid price erosion due to market share competition.
Mexican PVC prices fell about 10% during October, ending in domestic assessments of approximately 40-42 cents/lb ($882-926/tonne) on pipe and 41-45 cents/lb for GP.
Venezuela clarified its closed market position, with pipe and general respective assessments of about 53-54 cents/lb and 56-57 cents/lb in place by late October.
Brazil and Argentina PVC domestic values were fairly steady, but imports for Central America and the Caribbean slipped from about $950/tonne to about $850/tonne on lower export prices in the US.
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Polyvinyl chloride
Uses and Outlook
Two types of polyvinyl chloride (PVC) homopolymer are produced: rigid resins which have considerable strength and hardness; and flexible resins that contain a large proportion of plasticisers to make them soft and stretchable.
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Polyvinyl chloride
Process Technologies
A number of PVC processes are employed according to the end application, but polymerisation is normally performed at 40-70oC with the VCM in a liquid state under pressure in a batch reactor. All routes employ free radical initiators which are either soluble in the monomer or in the aqueous solution.
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