US polyvinyl chloride (PVC) contracts for May settled up by 1.5 cents/lb ($33/tonne, €24/tonne) on higher feedstock costs, market sources said on Monday.
The increase pushed US PVC contract prices up to 55.5-57.5 cents/lb for pipe-grade resin and 59.5-61.5 cents/lb for general purpose grade material.
The May settlement was half the 3 cent/lb price hike nominated by producers in an attempt to improve profit margins and hedge against a potential increase of feedstock ethylene costs.
Yet sources said the 1.5 cent/lb hike implemented for May contracts was mostly based on rising feedstock chlorine rather than ethylene, which had been the primary price driver in the PVC market for more than a year.
A 3 cent/lb price hike was being discussed for June contracts, but sources said one producer already indicated it would settle for a second monthly increase of 1.5 cents/lb.
Producers have also nominated a 3 cent/lb hike for July, sources said.
US PVC producers include Formosa Plastics, Georgia Gulf, Occidental Chemical, Westlake Chemical and Shintech.
($1 = €0.72)