MOSCOW (MRC)--Negotiations over prices of European polyvinyl chloride (PVC) for December shipments to the CIS countries began this week, with most European producers slightly reducing their export prices despite the significant cut in ethylene prices, according to ICIS-MRC Price report.
December contract price of ethylene was agreed down by €110/tonne from November, which presupposes the decrease in PVC production costs by at least €55/tonne.
However, because of limited supply, some European PVC suppliers decreased prices only slightly in the CIS markets, while some producers rolled over prices from the level of November.
Demand for PVC from the main consumers in the CIS countries continues to decrease due to seasonal factors, but, despite this, some European producers had to restrict deliveries because of power outages. Some buyers reported that they would receive part of the volume only at the end of the month.
Negotiations over December shipments of suspension polyvinyl chloride (SPVC) to the CIS markets were held in the range of €715-760/tonne FCA (free carrier), whereas deals a month earlier were done in the range of €715-780/tonne FCA.
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.