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09/09/17

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What is the reason of increasing PVC international prices?

Recently we have seen an increasing of PVC prices in connection with the termination of work of American factories located in the "Harvey" hurricane disaster area. About 30% oil refinery capacity in the country went down because of the disaster. In the last days of August, the chemical giant "Formosa Plastics" announced the occurrence of force majeure, which led to the disruption of all kinds of PVC and polyethylene supply. The petrochemical complex is located in Texas, in the area most affected by the floods. There are still obstacles to the resumption of normal operation of the plant. 

Another well-known manufacturer of polyvinyl chloride 'Oxychem" also announced the failure of supplies in connection with the suspension of production in Pasadena. Two strong explosions happened at the chemical plant "Arkema" which cause people's evacuation. Thus, a significant part of the chemical industry in the USA was blocked. 

In addition to the US, China also has suffered from natural disasters. The largest PVC factories in the country are located in Guangdong province, which was seriously damaged by the floods. In addition, prices in China rose in particular due to the reduction of supplies from the United States. In Egypt until the end of the year prices will not rise significantly due to the relatively low demand.

 

 

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