Prices of Russian PVC to continue to rise in September

Petrotahlil - Negotiations over September shipments of suspension polyvinyl chloride (SPVC) to the domestic market began in the Russian market last week, with domestic producers announcing a further price increase of Russian roubles (Rb) 1,000-3,000/tonne ($13.45-$40.35/tonne), according to ICIS-MRC Price report.

Demand for PVC remained good from Russian consumers. A similar situation was registered in foreign markets: strong demand was accompanied by price increases. On the back of this, Russian producers also intend to achieve a price rise of Rb1,000-3,000/tonne for September shipments. A long devaluation of the rouble against the dollar strengthened the bargaining position of Russian producers.

Shutdowns for maintenance at SayanskKhimPlast and RusVinyl’s production capacities significantly reduced the supply of resin in the market in July, but already in August, the situation with the PVC availability improved noticeably in the market.

Resin with K=70 were the exception because of technical issues at RusVinyl and Bashkir Soda Company"s production capacities.

In September, there will be also no need to talk about oversupply of PVC in the market because of strong demand and lower imports. Moreover, the devaluation of the rouble and higher export prices in China are unlikely to help boost imports in the near future.

As in the previous month, converters were in no hurry to agree on deals for September shipments of Russian PVC, hoping to limit the price growth to the lowest possible value. September deals for Russian resin with K64/67 were negotiated in the range of Rb81,000-85,000/tonne CPT Moscow, including VAT, for quantities of less than 500 tonnes.

($1 = Rb74.36)

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Source : ICIS

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