HOUSTON (ICIS)–US polyvinyl chloride (PVC) spot export prices drifted lower during the week, the ICIS assessment found on Friday.
The ICIS assessment drifted lower by $15/tonne at the lower end of the range and dipped $5/tonne at the top end, to the new assessment of $870-890/tonne FOB (free on board) US Gulf.
Buyer hesitance played a role in Asia where PVC futures are trading lower on a commodities exchange.
New rules in India regarding trade finance slowed activity there, as did a detrimental move of the Turkish lira to the dollar, muting buying activity and sent buyers seeking better prices.
Likewise, buyers in Latin America have been tempted by material on offer from Asia.
Global markets are now waiting on the benchmark offer in Asia to be released, likely next week, to provide a clearer picture of price direction for April business.
It was the second straight week of decline in prices for spot exports.
The PVC move dragged prices for precursor vinyl chloride monomer (VCM) lower by $40/tonne FOB US Gulf on a notional basis to follow the value of the derivative.
The new range for VCM is $660-685/tonne FOB US Gulf.
Major US PVC producers include Occidental Chemical, Westlake Chemical, Shintech and Formosa Plastics.
Image below: PVC is used to make pipes. Source: Stock Connection/REX/Shutterstock