Prices of Russian PVC to rise for October shipments
Source: DateAndTime:2017/10/25 17:43:35&nsbp; Hits:3497
MOSCOW (MRC)--Negotiations over October shipments of suspension polyvinyl chloride (SPVC) began in Russia between producers and converters this week, according to ICIS-MRC’s Price report.
All producers announced a price increase of not less than Rb2,000/tonne from September.
Local converters had to accept the increase in PVC prices by Rb5,000-6,000/tonne in September compared with August due to the limited supply of resin in the market due on falling imports and planned and unplanned shutdowns of several production sites. Producer intend to achieve further price increases in October at least by Rb2,000/tonne.
Demand for PVC from local consumers exceeded the output of Russian producers in July - August, in part because of planned and unplanned shutdowns of two major producers: SayanskKhimPlast and Bashkir Soda Company.
Reduction of the operating time of the resin was compensated by the stocks made at the beginning of the summer by both converters and producers.
In previous years, high seasonal demand was covered by the growth of imports, in particular, from China. But this year, traditional Chinese suppliers of acetylene PVC began to actively increase export prices from mid-July, and Russian companies practically completely refrained from imports from China by September.
RusVinyl reduced the capacity utilisation for technological work in September. Kaustik (Volgograd) shut down its PVC production from 24 September to 18 October for the turnaround. These factors limited the supply of resin from Russian producers in September and October.
The shortage of Russian PVC is not compensated by import supplies because of high export prices. Demand for PVC from the domestic market remained at a good level in September, although some companies have limited the volume of purchases due to a serious increase in prices.
Some producers increased PVC prices by Rb1,000-3,000/tonne in the second half of September in comparison with the level at the beginning of the month.
Demand for PVC is expected to be strong in October, although traditionally this month many converters are beginning to reduce their capacity utilisation and purchases. Given strong demand and limited supply, Russian producers intend to achieve further price increases in October.
Deals for October deliveries were discussed in the range of Rb71 000-74 500/tonne CPT Moscow, including VAT, for K=65/67 and for quantities up to 500 tonnes. Discussions for K=70 resin started from Rb73,000/tonne CPT Moscow, including VAT, and higher.