VCM

VCM prices moved up to US$755/MT in Asia in the week of December 17, 2007. This shift in prices can be attributed to movement seen in the market due to conclusion of deals for December delivery between major Japanese supplier Tosoh and downstream Chinese PVC producers. An unsuccessful attempt was made by the Japanese supplier to hike December prices by more than thirty dollars a ton, in a bid to recover a deficit in production margins due to higher naphtha cost. Despite higher offers quoted by the suppliers, deals were finally concluded at US$750/MT levels, due to strong resistance from Chinese buyers. However, deals were concluded at prices higher than November values by 15 dollars per ton.