Domestic markets for soft PVC in Latin America expected to be stable in early 2014; commercial activity in Brazil during Carnival festival, Feb. 28-March 4, expected to decline
January 14, 2014
(ICIS Chemical Business (CBNB Abstracts) )
– The domestic markets for soft polyvinyl chloride (PVC) in Latin America are expected to be stable in early 2014, as the fundamentals in the region are balanced.
In the first weeks of 2014, the interest of PVC consumers should increase as they purchase resin to balance their diminished stocks with industry requirements and drop as South America celebrates the Carnival holidays of 28 Feb-4 Mar 2014. During the carnival, the commercial activity in Brazil, a major South American economy, is expected to decline.
The PVC industry in the country encountered some industry problems in early 2013, experiencing low stocks in early 2013 due to the regional power outage in late Oct 2012. Industry players in Latin America are monitoring the movement of feedstock resin prices in the US and Asia to be able to predict the future of the region.
PVC suppliers in the US are eyeing Latin America for export sales. The demand for the chemical in the US continues to be steady even in the middle of gradual and irregular recovery of the construction industry and the country's economy.
Exports of PVC from the region to Asia are declining in China while the Indian PVC market is moderate and the economy of the eurozone is weakened.
Venezuelan PVC provider Pequiven has been encountering some technical issues and is importing PVC to be added to the country's domestic production. In early Dec 2013, pipe-grade PVC domestic prices stood at $1040-1090/tonne DEL in Mexico and $1160/tonne DEL in Colombia. Import prices for the material were assessed at $1000-1020/tonne CFR Pacific coast of South America.
A line graph shows domestic prices (cents/lb) of pipe-grade PVC in Latin America, specifically Brazil and Mexico, from Dec 2012 to Dec 2013.