U.S. PVC buyers and sellers disagree on direction of July contracts, with buyers seeking US$0.01/lb. decrease and sellers looking for a rollover

LOS ANGELES , August 2, 2011 () – Producers and buyers in the U.S. polyvinyl chloride market are disagreeing on July contract settlements as buyers seek a decrease and sellers hope for a rollover, ICIS news reported July 29.

PVC buyers have sought a US$0.01 per pound decrease on July prices following a drop in June feedstock ethylene contracts, which settled down by $0.0175/lb. July contracts had not yet settled.

However, two producers said July talks were still being negotiated and another producer said a recent increase in ethylene spot pricing supported a rollover.

Several U.S producers initially announced a $0.05/lb. June increase but that was delayed into July after June contracts settled at a rollover.

A buyer said successive price pushes in March, April and May totaling $0.11/lb. were all the domestic market could take, given that demand has been soft.

June PVC contracts, as of July 29, were $0.559/lb.-$0.605/lb. for pipe grades and $0.575/lb.-$0.625/lb. for general purpose resin, according to ICIS assessment.

One producer who had sought a $0.05/lb. hike for July contracts has split that into a $0.02/lb. increase for August and a $0.03/lb. increase for September, with other producers also seeking similar rates, ICIS reported.

The primary source of this article is ICIS news, Surrey, England, on July 29, 2011.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.