Price of VCM has dipped by almost fifty dollars this week, as downstream PVC demand continues to be lackluster from China. Downbeat markets for naphtha and ethylene are also exerting a pressure on VCM prices.
Though most August cargoes were offered at above US$1325/MT by sellers from Taiwan, Japan and Thailand, pessimistic intentions has pulled prices down, as deals were typically settled between US$1265-US$1325/MT CFR China.
Deals by domestic Chinese players was concluded for ethylene based PVC at US$1260-1280/MT FOB. Key producers are operating PVC plants at reduced rates. Rising costs pressures have caused an output cut at Hunan Zhuhua Chemical Co., Ltd. to 40%, Sichuan Jinlu Group to 50% and Yunnan Yanhua Chemical Co to 60-70% capacity. Henan Jiyuan Fangsheng Chemical Co at 40% capacity due to shortage of steam gas supply,
08-Aug-08 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}