An ongoing vinyl chloride monomer issue at Formosa Plastics' Point Comfort, Texas, plant is 

impacting downstream polyvinyl chloride production, and limiting availability for August, mark

et sources said Thursday. 

Multiple  sources --  including  some  with  knowledge  of  business  plans  --  said  this week 

Formosa  Plastics  would  not be  offering  spot  export  PVC for the upcoming month, adding 

additional tightness to the export market ahead of potential August price increases. Formosa 

is expected to have domestic resin in August and meet contractual obligations, sources said. 

A source with knowledge of company operations said repairs to the VCM plant were expected 

to last about two weeks. 

Formosa Plastics spokesman Steve Rice declined to comment. 

VCM  is  a  key  feedstock  used  in  the  production  of PVC. Formosa has a VCM capacity of 

753,000 mt/year at the Point Comfort complex. 

US  export  PVC  prices were assessed Wednesday at $830-$840/mt FAS Houston, stable on 

the  week,  as  the  market  prepared  for  potentially  higher  August  offers. One producer -- 

OxyVinyls --was heard nominating August prices at a $40/mt increase from July levels. 

Other  August  nominations  had  not  been heard by time of publication. A trader source said 

Thursday  that  the  increase could stick given the absence of a major producer in the market 

for  August.  Market  participants have previously said prices could move higher in the coming 

weeks given  more   limited availability  --  due  to both production issues and strong domestic 

demand -- as well as higher pricing out of Asia.