Venezuela PVC shipments delayed, causes unclear

07 March 2014 00:03 Source:ICIS News

HOUSTON (ICIS)--Polyvinyl chloride (PVC) shipments in Venezuela from domestic producer Pequiven are being delayed, but it is not clear if the cause is related to production issues or to the unrest in in the country in the past several weeks, according to comments from industry participants on Thursday.

Local sources said that on some days, it has been impossible to go to work because of the violence in the streets. Meanwhile, day-to-day industrial and personal activities are additionally restricted by shortages of raw materials, food staples and medicine, with no resolution in sight.

PVC prices are assessed as unchanged amid limited business. PVC domestic prices are assessed at $1,568/tonne DEL (delivered) for resin produced or imported by Pequiven, in a 75% domestic and 25% imported resin mix.

The official exchange rate is bolivares (Bs) 6.3/$1, but importers can buy US dollars auctioned by the Venezuelan Central Bank at about Bs12.30, while US dollars are currently offered in the parallel market at above Bs80.

By Ron Coifman