Mexichem mulls response to feedstock suppiers’ declaration of VCM force majeure

03-Jan-13

Latin American PVC producer Mexichem continued with internal discussions in an effort to respond to a force majeure announced last week by its feedstock VCM supplier PPG in the US, as per a source to Platts. “We're still looking at the situation and looking to fill the quantity [of feedstock VCM] needed," the source said. "Our supply will be affected. It's just a matter of finding out to what extent." Market participants had expected Mexichem to declare force majeure in response to the VCM supply disruption. PPG declared force majeure for liquid caustic soda on a system-wide basis and on vinyl chloride monomer produced at its Lake Charles, Louisiana, facility on December 27 following a chemical fire that began three days prior. Supply was already tight in the Latin American PVC market stemming from increased demand in the US domestic housing market and leaving little to export.