US PVC prices firming up across the globe
Players in a number of major global markets have reported receiving higher PVC prices for American origins this week, with sources attributing the rise to relatively limited supply from the US as well as the possibility that the country may see a rise in demand for reconstruction following Hurricane Sandy, as per the pricing service of ChemOrbis.
In China, US PVC prices for December were announced with $20-50/ton increases over November, putting US prices at or even above prices from a major Taiwanese producer, who had announced a rollover to a slight drop on their December prices to China. “We received December PVC prices from US sources with $50/ton increases from November, which we believe are due to some PVC shutdowns within the United States. We elected to purchase some Taiwanese material this week as it is more competitive than the prevailing offers for American origins,” a trader in Xiamen stated.
A trader in Shanghai commented, “We sold some US PVC for December with $20/ton increases from our most recent November deals. Our suppliers cited high VCM feedstock costs and limited availability in the US as the main reasons for their price increases.” US PVC prices also firmed up in India, where trading activity was said to be a bit slow this week following last week’s Diwali holidays. “Prices for US PVC have firmed up after the holidays and the lower end prices that were available before the holidays have disappeared this week,” an Indian converter reported.
An Indian trader who reported receiving new PVC prices from the US told ChemOrbis, “We believe that buyers will start to return to the market next week and that import PVC prices will hold mostly stable due to improving buy interest.” In Turkey, import US PVC prices recorded increases on the lower end of the range when compared with the past week. “Import prices for American and European origins firmed up this week while local PVC prices were mostly unchanged,” a Turkish PVC pipe converter reported. Another PVC pipe converter added, “We had purchased some American PVC at more attractive levels earlier in the month.
Import prices have firmed up this week, but we feel that this increase will only be temporary and that more attractive prices will emerge for December.” Players in Egypt reported that American PVC import prices gained around $20-25/ton on a CIF Egypt, cash equivalent basis over the past week. “American PVC prices have gained ground and are likely to see further increases as reconstruction work following Hurricane Sandy is likely to lead to diminished export availability from the country,” a PVC pipe manufacturer reported. A trader based in Cairo said, “Import PVC prices have risen and we think that prices will rise by another $25-35/ton before buyers’ resistance will strengthen to the point that further increases will become unlikely.” Another PVC pipe converter said, “American PVC prices have begun to move higher again due to limited supply from the US.”