MOSCOW (MRC)--European polyvinyl chloride (PVC) producers exporting to the CIS markets have raised prices for the third consecutive month due to higher feedstocks, according to the ICIS-MRC Price Report.
The May contract price of ethylene was agreed up by €30/tonne from April, leading to an increase in PVC production costs in the region by €15/tonne.
The rising cost of raw materials was the main reason for higher export prices from European producers over the last three months.
European producers announced price increases of €10-25/tonne for May shipments to CIS countries.
Demand for PVC has remained weak from the main consumers in the CIS for several months due to seasonal factors, and sufficient supply of PVC was met by national producers.
Also in favour of domestic PVC was the fact that local raw materials are cheaper than European ones.
Some European producers still have had restrictions on export shipments since March because of upcoming shutdowns for maintenance, but given the current low demand for imported PVC such restrictions are not critical.
Deals for May shipments of suspension polyvinyl chloride (SPVC) to the CIS markets were negotiated in the range of €720-805/tonne FCA (free carrier), whereas last month’s deals were done in the range of €710-785/tonne.
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.