VCM

Restricted supply across Asia and higher naphtha feedstock costs, as well as rising downstream PVC prices, have taken their toll on VCM prices. VCM prices continued on their uptrend in Asia, rising to US$860/MT in the week of March 10, 2008. Anticipated offers for March shipment from Japan have been sharply hiked to US$900/MT levels, taking prices atleast seventy dollars higher than February levels. Though buyers from China have not yet commenced price negotiations, it is estimated that prices for March will find stability at US$860/MT CFR China. This represents a fifty dollar rise that corresponds with the rise in PVC values.