Mediterranean PVC markets see higher offers out of the US

25-Nov-11

Recently, several major Mediterranean markets have been seeing higher import offers for American PVC, as per ChemOrbis. This is being attributed to rising export PVC prices from the US and greater buying interest from PVC buyers in Southeast Asia and India, following the news of Tosoh’s shutdown at its VCM plant in Japan, which has prompted speculation that VCM and PVC supply might tighten in the region. Most Southeast Asian PVC producers are non-integrated and several source much of their feedstock from Tosoh. A reseller reported that export PVC prices have risen from the US during November. According to this seller, a US supplier raised its export offers this month due to bullish global dynamics. A trader in Italy reported receiving new import PVC prices from his American suppliers this week. Based on the trader’s report, USD based import prices from the US to Italy for cargoes scheduled for December or early-January delivery have gained since the start of the month. “Apparently, there is strong demand from India for US PVC and US suppliers are therefore raising their export offers,” he commented. PVC players in Egypt, where US PVC is the main supply source, have also reported that US PVC prices have risen recently. Players in the country report that import US PVC prices are higher when compared to last week, although there is not much buying interest at these new levels. “These increases are unreasonable in the face of slow demand,” a buyer commented. Although import PVC offers from the US to Turkey were stable week over week, some Turkish players reported hearing higher US PVC prices being talked in the market. Turkish players commented that they do not believe that any price increases on US cargoes will prove workable as higher US prices would render American origins uncompetitive in the market.