Tight supply, soft dollar help US PVC exports

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Tighter conditions in the global chlorine market, along with a weakening US dollar, are boosting the export prices for US polyvinyl chloride (PVC) and feedstocks, a producer said on Tuesday. “With general economic conditions deteriorating, finally caustic demand has been reduced, and now there is a tightening in the chlorine market, which will impact the amount of PVC you can produce,” Westlake Chemical CEO Albert Chao said in an earnings conference call with investors. He said export prices for PVC, vinyl chloride monomer (VCM) and ethylene dichloride (EDC) were all going up. US PVC export spot prices were assessed last week at $600-640/tonne (€450-480/tonne) FOB (free on board) US Gulf, according to global chemical market intelligence service ICIS pricing. Chao said a 3 cent/lb domestic price increase proposal for May was supported by a seasonal increase in PVC demand as well as the recent chlorine tightening. He noted that portions of the federal government’s economic stimulus package include infrastructure, housing and energy efficiency projects that consume PVC construction materials. “We are hopeful these initiatives will improve vinyl's business conditions,” Chao said.
2009-05-06 收起回复

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