Industry sources told SSESSMENTS.COM that two US PVC producers had adjusted their maintenance schedules following a significant price drop due to the coronavirus pandemic which weighed on global PVC demand.
According to the sources, Occidental Petroleum’s division OxyChem had rescheduled a turnaround at its 1 million tons/year PVC plant in Pasadena, Texas to May. The maintenance was initially planned for this month. Formosa Plastics USA also pushed maintenance at its 513,000 tons/year PVC unit in Baton Rouge, Louisiana from May to June. Meanwhile, Shintech’s 1.45 million tons/year PVC plant in Freeport, Texas, is currently under maintenance that is expected to last until next week.
Demand for PVC, a construction staple, is closely related to economic activity and growth. The COVID-19 pandemic, which freezes global economic activity, also weighs on PVC demand and price. As SSESSMENTS.COM noted, US export PVC prices have fallen by 39% from $855/ton FAS Houston on March 18 to $520/ton on Wednesday.
