MOSCOW (MRC)--Stronger demand from the domestic market has forced Chinese producers of acetylene polyvinyl chloride (PVC) to proportionally increase their export prices, rising for Russian companies by $160-170/tonne, according to ICIS-MRC's price report.
Higher PVC prices began to grow in the Chinese market in the second half of August and were caused by outages at several plants.
Prices continued to go up in September and reached $870-900/tonne CFR China at the end of the month. Therefore, producers of acetylene PVC from the north of the country, which are the traditional resin suppliers to Russia, were forced to proportionally raise their export prices.
In the second half of August, Russian companies bought acetylene PVC in China at $680-730/tonne DAP (delivered at place) Dostyk and $740-750/tonne DAP Moscow (for direct container shipments by railway to the Moscow region).
In early September, prices of resin increased by $40-60/tonne, in the second half of the month, Chinese producers announced a further increase in export prices.
Thus, export prices of Chinese producers had risen to $845-900/tonne DAP Dostyk and $900-920/tonne DAP Moscow by late September (for direct container shipments by railway to the Moscow region), up by $160-170/tonne from August.
Many companies said they had suspended all their purchasing back in the first wave of the September increase in export prices of acetylene PVC in China.
A major oversupply of resin in the domestic market, apart from the price factor, also led to this decision
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.