Ongoing VCM issue at Formosa Plastics' Point Comfort plant limiting PVC avails for August

24-Jul-17

An ongoing vinyl chloride monomer issue at Formosa Plastics' Point Comfort, Texas, plant is impacting downstream polyvinyl chloride production, and limiting availability for August, as per market sources in Platts.
Multiple sources -- including some with knowledge of business plans -- said this week Formosa Plastics would not be offering spot export PVC for the upcoming month, adding additional tightness to the export market ahead of potential August price increases. Formosa is expected to have domestic resin in August and meet contractual obligations, sources said. A source with knowledge of company operations said repairs to the VCM plant were expected to last about two weeks. Formosa Plastics spokesman declined to comment.

VCM is a key feedstock used in the production of PVC. Formosa has a VCM capacity of 753,000 m tpa at the Point Comfort complex.