MOSCOW (MRC)--Negotiations over February shipments of suspension polyvinyl chloride (SPVC) began in Russia between producers and converters last week, with all producers announcing a Rb1,000-2,000/tonne price increase from January, according to ICIS-MRC Price report.
The growth of prices for suspension PVC in the Russian market began in January, and local producers also announced increases for February deliveries.
A serious increase in exports in December-January helped Russian producers to balance the domestic market in the low season.
PVC prices began to grow dynamically in foreign markets in December, which has affected the Russian market recently.
At the same time, the current appreciation of the rouble against the dollar did not help the situation for converters. Deals for February deliveries were discussed at Rb1,000-2,000/tonne ($18-36/tonne) higher than the level in January.
PVC prices began to rise in Asia in December, and the upward trend continued in January.
PVC prices from Chinese producers, the main importers of PVC in Russia, exceeded $900/tonne, DAP (delivered at place) Moscow in the end of January.
That, even in the current strengthening of the rouble against the dollar, does not make the prices of Chinese PVC comparable to the price of Russian producers.
Demand for PVC from Russian consumers has traditionally been very low in January-February due to the seasonal factor, but this year producers have been more prepared for this scenario, having significantly increased exports (PVC exports in December exceeded 21,000 tonnes).
Some producers increased PVC prices in January by Rb1,000/tonnes.
Many converters complained that, if they accept the price rise in February they will have to raise prices for finished products, while demand for finished products leaves much to be desired.
But they realised that there is no alternative to the Russian PVC, even taking into account the increase in prices.
Some producers do not rule out further growth in PVC prices in March, partly due to the situation in the PVC market in Asia.
Overall, deals for January shipments were done in the range of Rb63,500-65,000/tonne CPT (carriage paid to) Moscow, including VAT, for K65/67 and for volumes up to 500 tonnes.
Negotiations over prices for resin with K70 started from Rb63,500/tonne CPT Moscow, including VAT, and higher. Prices for PVC with K58 were on average up by Rb1,000/tonnes on PVC with K70.
($1 = Rb56.27)
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.