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Fitch: Solid Quarter Expected for Polyvinyl Chlorate Industry
Monday June 6, 3:18 pm ET

CHICAGO--(BUSINESS WIRE)--June 6, 2005--High price levels will lead to continued year-over-year margin improvement in Q2 for the North American Polyvinyl Chlorate (PVC) industry, according to Fitch Ratings. In general, PVC industry players had success in raising product prices in the first quarter, and segment margins improved due to price increases, particularly for upstream producers. Fitch believes that industry margin improvements will occur despite the potential for slower volume growth and other pricing challenges in 2005.

The first quarter of 2005 did not see the robust demand for PVC as previously expected. PVC volumes were also generally lower in January and February, but improved in March. Demand is expected to improve, however, as the second quarter is typically a seasonally strong one for PVC.

For more information, the report 'Chemical Update: Polyvinyl Chloride', dated June 3, 2005, is available at www.fitchratings.com under the 'Corporate Finance' header, then 'Special Reports.' The report provides analysis specific to each of the major North American PVC producers, as well as 2004 financial data.

Fitch's rating definitions are available on the agency's free of charge web site, www.fitchratings.com. Published ratings, criteria and methodologies, and relevant policies and procedures are also available from this site, at all times. This document will remain on the free site for seven days.

Source: Fitch Ratings

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