FEEDSTOCK - VCM

VCM prices remained at last weeks' level of US$740/MT in Asia in the week of December 3, 2007. A lack of market movement was witnessed after Japanese suppliers closed deals for November shipment at US$740/MT levels - at levels where VCM prices are perceived to have bottomed out. A recovery in downstream PVC market sentiments will lead to an improvement in VCM markets over the next few weeks, from rock bottom prices of November and December prices. India's Reliance Industries had to shut down its 200,000 tpa VCM plant mid week, at Gandahar due to a fire- resulting in partial influence on downstream PVC production.