Mexico’s PVC export offers soften on buyer resistance

06 March 2014 23:35 Source:ICIS News

HOUSTON (ICIS)--Mexico was heard offering polyvinyl chloride (PVC) for export in March at a $10-20/tonne decrease from February, as buyers in other regions resisted high resin prices, sources said on Thursday.

Industry participants said March PVC export offers were at $1,090-1,100/tonne CFR Europe/Asia/Turkey.

The decline in export resin prices is in contrast to proposed hikes for domestic resin in Mexico.

US suppliers had proposed hikes of 2.5 cents/lb for pipe-grade PVC and 3.0 cents/lb for general purpose (GP) resin going to Mexico, because of tightening availability in the US as a result of PVC sales controls by two producers, maintenance turnarounds and Axiall’s declaration of force majeure on vinyl chloride monomer (VCM) production in Lake Charles, Louisiana.

PVC demand in Mexico is gauged as healthy and is projected to increase with greater activity in the construction sector as the weather warms, according to local sources.

Mexichem is the PVC producer in Mexico.

By Ron Coifman