PVC in the Doldrums

Polyvinyl chloride (PVC) producers are hoping to keep January prices steady after three successive months of declines. Producers are hopeful that a combination of rising demand and feedstock costs could help maintain prices despite seasonally weak demand. December PVC contracts dropped 2 cts/lb, to 51 cts-56 cts/lb del, bringing total declines during the fourth quarter to 6 cts/lb. Operating rates for PVC plants averaged 75% in fourth-quarter 2006, and plummeted to an all-time low of 66% in December. PVC resin and pipe inventories rose in December, despite...

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