US PVC offers firming around the globe

10-Feb-11

American PVC offers have been tracking a firm trend in several major global markets this month including China, Turkey and Italy, as per Chemorbis. In China, after initial increases of US$50/ton for February shipment cargoes, sellers of US origin wrapped up February transactions with increases of US$30/ton before Asian players stepped out from the market for Chinese New Year holidays. Players in Turkey also saw higher import PVC offers from the country this month. A trader is reported to have sold out US materials this week. He also noted that supplies from USA are limited relative to the previous months as US suppliers are currently enjoying good demand from buyers in other markets across the globe. Confirming these comments, a trader in Italy reported that most of his US suppliers have sold out their allocations to Italy. Due to constant increases from European sellers, Italian buyers had been looking for lower priced alternatives from overseas producers in the previous weeks. The trader, who is currently waiting to hear new offers from these US suppliers was informed that they are currently facing production issues due to freezing weather. As a result, he is confident that import PVC prices will rise in March. Earlier in the month, US producers were planning to start reducing export quantities for February to focus on the domestic market as the high season approaches, according to market sources, which can be considered as another reason for limited exports out of the country.On the back of the recent developments in the upstream markets, American PVC producers are likely to maintain their firm stance for their new shipment cargoes. Following a fire which broke out at an Enterprise Products natural gas liquids (NGL) complex in Mont Belvieu, Texas, spot ethylene prices in the US jumped by US$77/ton on Tuesday compared to the previous offer levels.