VCM

VCM markets of Asia were subdued and dipped to US$765/MT on diminishing downstream demand and worsening buying intentions in the week of November 12, 2007. Bearish sentiments prevalent in the markets were a direct impact of low bids from Chinese PVC producers. Despite falling prices, buying sentiments from China were pegged at least thirty dollars lower on weakening prices of downstream PVC. In fact, the continuing sluggish market sentiments could force Japanese VCM producers to consider a cut in production, in a bid to cope with increasing cost pressures, as upstream naphtha prices continue to rise.