Axiall revises March PVC nomination up to 5 cents/lb: company source
Houston (Platts)--7Feb2013/343 pm EST/2043 GMT
Axiall is revising its March suspension-grade PVC price increase from
3 cents/lb to 5 cents/lb, a company source familiar with domestic PVC pricing
said late Wednesday.
The cost of ethylene has been increasing dramatically since the last few
months of 2012 and the company's prior price increase did not reflect that,
the source said.
"We will be issuing official documentation on the increase later in the
week," the source said.
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Spot ethylene values were last talked at about 63 cents/lb, up more than
13 cents since early December.
The company announced the initial 3 cent/lb increase in late January.
Major PVC producers including Westlake Chemical, Shintech, Formosa
Plastics and Oxy announced a 5 cent/lb increase for March deliveries in late
January. All producers were heard citing increasing feedstock costs as reason
for the contract price increases.
Major traders and buyers attributed the recent spike in pricing to the
bout of turnarounds that are scheduled in the near future. Formosa's 3-week
planned turnaround in Point Comfort, Texas, was expected to start in late
February. Axiall was heard to have a planned a 3-week turnaround of its
Plaquemine, Louisiana, plant in mid-March. Shintech was also planning a
3-week turnaround in late February at its Freeport PVC plant. Lastly,
Westlake Chemical's ethylene cracker expansion was expected to be completed
by the end of February.
"Four of the five largest producers will be running at reduced rates in
February and March. PVC price has nowhere else to go but up," one trader
In PVC markets, the US prices were unchanged week on week, assessed
Wednesday at 49-51 cents/lb delivered via railcar. US PVC export prices were
up $5/mt for the week, assessed Wednesday at $1,005-1,015/mt FAS Houston, as
four major US producers were reported sold out for February, and several
traders reported spot product for any-February shipments unavailable.
Axiall Corporation is the company created by the February 1 merger
between Georgia Gulf and PPG's commodity chemical business, in a transaction
valued by the companies at $2.1 billion.
--Pavel Pavlov, email@example.com
--Edited by Jason Lindquist, firstname.lastname@example.org