North American PVC production in May rose 2.2% from April to 1.2 billion lbs, and was 5% higher compared with the same month in 2010, according to a monthly industry report.
PVC industry operating rates were at 86%, an increase of 2% from the previous month, and 2.3% lower on year-over-year basis.
May export sales in the US fell 10% from April to 367 million lbs, but increased 24% from May 2010.
"The international market for PVC resins has been very weak with very slow demand amid lower crude oil and other feedstock prices. PVC prices in mainstream export markets have yet to stabilize although the speed of price reductions have slowed down," the report noted.
The export-to-production ratio was 29% during May, down 4% on a monthly basis, but increased 5% compared to the same period of last year.
On the domestic side, May PVC sales dropped 5% to 885 million lbs from April and were nearly flat to the same period in 2010.
PVC total sales in May remained flat to April at 1.3 billion lbs. However, compared to May of 2010, sales rose 5.7%.
The calculated end of May inventory jumped 21% from April, but plummeted 75% in the same month of the previous year.
During May, existing home sales reached 4,810 million units, down 4% on monthly basis, and down 15% from May 2010.
Meanwhile, May registered 612,000 housing permits issued, an increase of 9% from April and 5.2% higher on year-over-year basis.
