Russia Jan-Sept SPVC imports down on higher production, weaker demand

Source: ICIS News

2017/10/11

MOSCOW (MRC)--Russian suspension polyvinyl chloride (SPVC) imports were around 42,400 tonnes in the first nine months, down 64% year on year due to an increase in domestic production and weaker demand, according to the MRC’s DataScope report.

September SPVC imports slumped to 432 tonnes from 2,500 tonnes a month earlier.

Local companies almost completely ceased to purchase resin in foreign markets because of high export prices and sufficient supply from Russian producers.

Thus, overall SPVC imports of resin to Russia were 42,400 tonnes in January-September compared to 117,600 tonnes a year earlier, with May accounting for the peak shipments, totalling 11,800 tonnes.

A major increase in domestic production and a further reduction of demand in the key processing segments led to a significant decrease on the dependence of PVC imports even in the period of high seasonal demand.

Chinese producers were traditionally the key foreign PVC suppliers for the past several years.

Last month’s overall imports of Chinese acetylene PVC fell to 58 tonnes from 2,300 tonnes a month earlier.

Because of a major increase in export prices, Russian companies fully suspended their purchasing of resin in China back in the second half of July, and August shipments were, in fact, debts under contracts as of the first half of July.

Thus, imports of Chinese resin were 39,500 tonnes in the first nine months of 2017, compared to 92,200 tonnes a year earlier.

Imports of Chinese acetylene PVC are not expected to increase until the end of the year, even taking into account the October reduction in export prices.

European producers shipped small quantities of suspension, overall imports of European PVC fell to 2,400 tonnes over the stated period from 5,800 tonnes a year earlier.

MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.