US PVC producers seek third 2020 domestic price increase in August
All four US polyvinyl chloride producers have announced 3 cents/lb price increases for August, in addition to the same amount sought for July and accepted for June.
Sources familiar with company operations at Formosa Plastics USA, Westlake Chemical, Shintech, and OxyChem, the chemical division of Occidental Petroleum, confirmed the latest price increase announcements issued July 16-17.
The companies did not respond to requests for comment.
Domestic prices for the construction staple used to make pipes, window frames, vinyl siding, and other products fell 8 cents/lb in April and May as buying stalled amid widespread coronavirus pandemic-related shutdowns in the US. By late May, demand began rebounding strongly and producers announced 3 cents/lb price increases for June that were later accepted. Announcements of a second 3 cents/lb price increase for July followed.
COVID-19 spikes in some regions in June and July, such as Texas, Florida, and Arizona, has cooled the demand rebound, leading some market sources to say that the July increase may not be accepted in full.
