Asian PVC prices fell $22.90/mt or 2.5% in November to average $879.60/mt CFR Far East Asia, compared with $902.50/mt CFR Far East Asia in October, Platts data showed Friday.
The November average was also down 13.6% year on year, the data showed.
PVC prices were flat at $865/mt CFR Far East Asia for the first two weeks of November, then began to rise mid-month amid concern over tightening feedstock vinyl chloride monomer supply after a fire at Tosoh's complex in
Tosoh shut its 550,000 mt/year No. 2 and 400,000 mt/year No. 3 VCM plants at Nanyo in western
The VCM/PVC spread averaged $115.85/mt in November, down $21.65/mt from October. Standalone PVC producers typically need a spread of $150/mt against VCM to break even.
As a result, several standalone PVC producers that source the bulk of their VCM requirements from Tosoh have cut operating rates to 60-70% this week, from 70-80% previously.
"We are at a disadvantage compared to those PVC makers who have integrated complexes to produce their own VCM supply from ethylene dichloride," a Taiwanese PVC producer said. "We can only reduce our operating rates or bring maintenance plans forward to minimize losses."