PVC Sales In Mexico Slowed And Inventories And Exports Surged

News of a slowdown in domestic PVC sales in Mexico pushed up inventories and exports in March and early April.

"Inventories are high because construction is stagnant," the source said.

Mexico's new President, andres Manuel lopez obrador, has halted construction of Mexico City's airport, citing irregularities in contract negotiations. Negotiations are under way on the possibility of building a new airport in saint Lucia, about 80 kilometers north of Mexico City. The source explained that the town may not be an ideal location for the airport as the road to and from st Lucia needs to be repaired and expanded.

Domestic demand for PVC dropped in Mexico, leading to lower prices. Suppliers offered discounts to sell materials, but the sales volume failed to grow.

Exports to Latin America have surged as suppliers look for new export channels for their products, with high volumes to Colombia and low supplies to other South American producers and non-producers.

Mexican PVC should compete with American export already, want to compete with Asian raw material again. Formosa plastics announced a price cut in April, leading to a sharp drop in March orders.

The price of PVC pipe grade resin DEL is as low as $880 / ton, FOB Mexico export price is hovering around $770- $790, FOB us gulf price is $765 / ton.

Unipar Indupa, Braskem, Unipar carbcloro, Mexichem and Pequiven are the leading producers of PVC in Latin America.


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