US export PVC prices dropped $30/mt Wednesday to be assessed by Platts at $635-6645/mt FAS Houston on weak global and domestic PVC demand, lower crude oil prices and ample supply, sources said Wednesday.
The assessment is the lowest since May 20, 2009’s $625-635/mt FAS Houston assessment, according to Platts data, having dropped $230/mt or 26.4% from a 2015 high of $870/mt FAS Houston seen in April.
Sources said November export pricing negotiations were ongoing, as buyer and producer indications were $30/mt apart. Buying interest continues to weaken, traders said, with bids heard as low as $620/mt FAS Houston.
Sources said a drop in domestic demand in the fourth quarter of the year, weak ethylene feedstock pricing and softer global economic conditions were also applying pressure to export prices, despite three production outages.
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Sources said a three-week planned turnaround at OxyVinyl’s Deer Park, Texas, complex is completed. The planned work included a shutdown of its PVC and VCM plants, a company source with knowledge of operations said.
Additionally, Shintech is undertaking a planned outage at its Addis, Louisiana, site in order to tie in a future 560,000 mt/year expansion, sources said. The turnaround is due to be completed in early November. Company sources with knowledge of operations confirmed the outage and the restart date.
Formosa Plastics Corp. USA is expected to carry out a planned turnaround at its Point Comfort, Texas, vinyls production complex in November, according to sources.
The weakness in the US ethylene market is hurting PVC prices, sources said. Spot ethylene hovered near six-year lows for most of October on abundant supply and a weak energy complex, sources said.
The spot ethylene price was assessed Wednesday at 23.375 cents/lb FD USG for October delivery, but it fell as low as 18.5 cents/lb FD USG — an 82-month low — on October 6, amid talk of three planned US Gulf Coast ethylene production facility outages.
The ethylene component accounts for 47% of PVC production.
