MOSCOW (MRC) -- On Wednesday, North American Westlake declared force majeure at its PVC production. Some market participants do not exclude that the next outage of PVC production might result in a further increase in export prices, according to ICIS-MRC Price report.
The growth in demand for North American PVC from both domestic and foreign markets, as well as scheduled outages for maintenance at Formosa and Georgia Gulf facilities in January-February, have led to a major increase in export prices over the past three months. This week price offers for February shipment of PVC from the U.S. were voiced in the range of USD1,010-1,020/tonne, FAS Houston. For March shipments, some manufacturers reported the need to raise the price by USD40-50/tonne.
On Tuesday, after a problem in the production of vinyl chloride monomer (VCM), Westlake declared force majeure on PVC deliveries from its plant in Geismar (La.) The plant capacity makes 300,000 tpa. The dates of the production resumption have not been reported yet.
According to some market participants, they have not received yet the full volumes of PVC as per January and February contracts. And it is highly likely these volumes to be shipped only in May.
Just last week, some North American PVC suppliers claimed a possible increase in export prices by USD40-50/tonne for March shipments. Many PVC buyers took these statements quite skeptical. Negotiations on North American PVC prices for March shipments will begin next week, and given the force majeure at one of the Westlake's plants, their plans regarding an increase in export prices look very realistic.
MRC