New York, NY, October 14--PVC prices recovered some momentum in August and September, whereas nylon resin prices have continued climbing, according to Asia Intelligence Wire.
US/Canadian PVC prices now are up an average of 11 cts/lb in 2004, also reflecting higher prices for crude oil and natural gas and tight VCM supply. PVC prices have also been lifted by production discipline on the part of PVC makers. Resin inventories are currently under 10 days.
North American PVC makers are also exporting more resin, taking surplus material out of the market. PVC makers now aim to raise prices by 1 ct/lb as of 1 Nov 2004.
US/Canadian PVC sales were up almost 9% in 1H 2004. Growth in the rigid pipe and tubing segment - accounting for 42% of overall sales - was almost 9% too, whereas exports climbed more than 14%. Nylon prices are up 10% since August 2004. Average nylon prices have climbed about 20% in 2004.
Nylon resin makers achieved the increases even though North American auto sales were roughly flat. The automotive sector accounts for about 40% of North American nylon resin consumption. North American nylon sales to the automotive and truck segment are down over 8% in 2004, even though overall sales were up almost 5%.
Almost all of North American growth in 2004 has been in sales to resellers, distributors and compounders. This segment is up almost 40%.
