Formosa Plastics Raises Taiwan PVC Prices to Record on Costs

By Yu-huay Sun

Aug. 1 (Bloomberg) -- Formosa Plastics Corp., Taiwan's largest maker of polyvinyl chloride, raised its benchmark PVC prices for domestic customers to a record to reflect increased costs, spokesman Jerry Lin said.

Prices rose by NT$1.5 (5 cents) a kilogram in August, the Taipei-based company said on its Web site. Lin, who spoke by phone from Taipei today, declined to give the new prices.

Ingredients of PVC include ethylene, a petroleum derivative. Benchmark crude oil prices in New York have risen 29 percent this year.

PVC is required at every building site. It is used to wrap electrical wiring, in water pipes, floors and in window frames as an alternative to iron, wood or aluminum. A more malleable form becomes synthetic leather for sport shoes and handbags.

To contact the reporter on the story: Yu-huay Sun in Taipei ysun7@bloomberg.net