VCM

VCM prices in Asia rose to US$870/MT in the week of March 24, 2008. This price hike was sustained by stringent supplies on one hand and bullish downstream PVC prices on the other. Supplies continue to be partially affected on account of closure of Formosa's VCM and EDC plants at Kaohsiung. The shutdown will affect production at the 240000 tpa VCM facility until end of March. As the Japanese Yen strengthens against the US dollar and downstream PVC market continues to be bullish, producers from Japan plan to boost offers for April by almost fifty dollars. Selling indications from Taiwan for April pegged at US$900/MT have been met with buying interest of US$860/MT CFR China. Inadequate cargoes in the South East region have led to offers being quoted at almost US$1000/MT CFR.