POLYMER FEEDSTOCK - VCM

VCM price spiked to US$860/MT level in Asia in the week of Sep 3, 2007. Stringent supplies in the region have led to a 10-20 dollar hike in the price of VCM for the week. Deficient inventories have caused Japan's Tosoh to defer VCM exports for September. Offers for the rest of the month were pegged higher at US$870-880/MT, but buying interest from downstream PVC manufacturers in China waned and caused VCM prices to linger around US$840-850/MT. It seems that the sellers will prevail in this situation of “who will relent first” as they seem unwilling to lower their offers because of limited cargoes.