US producer Shintech will increase its price for PVC suspension-grade resin by 3 cents/lb, effective March 1, a company source with knowledge of pricing said Monday.
The company becomes the third PVC producer to announce domestic price increases for March in the past week. OxyVinyls and Axiall were heard last week announcing 3 cents/lb. Oxy was also the first PVC producer to announce a February increase in late December. Axiall, Shintech Westlake and Formosa all closely followed suit, announcing increases of 3 cents/lb for February.
OxyVinyls is expected to undergo a planned five-six week turnaround at its vinyls complex in Corpus Christi, Texas, in mid-March, sources said. Confirmation from the company was unavailable by time of publication.
Three other major producers are scheduled to undergo planned turnarounds during the quarter. Formosa Plastics Corporation USA is to complete a planned a turnaround in Baton Rouge, Louisiana, in the upcoming week. Shintech is next in line at its Freeport, Texas, PVC plant in February or March, and then Axiall in Plaquemine, Louisiana, in late March.
In markets, trading levels were heard in the range of $690-$700/mt FAS Houston, with producer offer levels heard at $720-$730/mt, while bids were heard at $660/mt FAS-basis.
In feedstock markets, ethylene spot prices continued to hover near 52-month lows, to be assessed Monday at 34.75-35.25 cents/lb FD USG for both March and April deliveries. Recent weakness seen in spot markets has prompted some ethylene trading sources to expect 1-5 cents/lb drop in ethylene contract prices which were settled in December at 38.25 cents/lb delivered. Ethylene component of PVC production accounts for 49%, according to Platts data.
– Platts.com
