PVC offers to Middle East increase amid tight US supply

SINGAPORE (ICIS)–Spot offers for US-origin polyvinyl chloride (PVC) to the Middle East markets increased this week on the back of tight export allocations from the US in the aftermath of Hurricane Harvey.

Offers, which emerged after a two-week hiatus, were located at $980/tonne CFR (cost and freight) GCC, up by at least $50/tonne from offers last heard in August, market sources said.

Harvey pounded on the US Gulf Coast in late August, causing massive shutdowns of refinery and petrochemical capacities in the US Gulf Coast.

Middle East buyers have so far had a lukewarm response to the higher PVC offers from the US. Some end-users were waiting for a possible price corrections going forward.

Some market participants said there was no huge improvement in demand supporting higher PVC prices.

On 8 September, PVC prices were assessed at $920-950/tonne CFR GCC, according to ICIS data.