U.S. fuel supply rises to record high as consumer prices soar

U.S. fuel supply rises to record high as consumer prices soar

Bloomberg - - A key building material used in everything from water pipes to window frames jumped to a fresh record high in the U.S. providing inflation bulls with even more ammunition as consumer prices soar

In a new study, Hurricane Ida knocked polyvinyl chloride production more than 60% off on USA s soil in the U.S. According to the data provider ICIS. It was the latest hit to the Gulf Coast industry following widespread outages in February after a historic freeze triggered offshore lines. The price rally is resoning around the world: The U.S. is now the largest exporter of PVC, after the petrochemical boom led to a surge in shale production in recent years.

We re now hearing some buyers there are looking to Asia for supply at the moment, said Jeremy Pafford, head of North America with ICIS, in an email to market intelligence. Expectations are that tight supply situation will continue for several weeks. U.S. Gulf Coast export PVC prices were assessed at $1,900 a metric tonne for the week of Sept 10 after 28% increase since the beginning of the year, according to ICIS.

There may be more rally to come. The price of ethane, a byproduct of natural gas and a key feedstock for everyday plastics including PVC, was up 25% so far this month and on Thursday reached the highest level in three years according to Bloomberg data compiled. Gas prices are hovering near a seven-year high.