MOSCOW (MRC)--Prices of European polyvinyl chloride (PVC) for July shipments to the CIS markets dropped slightly although to a lesser extent than those for Europe’s ethylene monthly contract prices, according to a MRC Price report.
The European ethylene contract price settled down by €75/tonne.
Theoretically, the fall should lead to a decrease of €37/tonne in PVC production costs.
However, despite the significant decrease in feedstock prices, some European producers limited the reduction in export prices of PVC to be shipped to the CIS countries by €10-25/tonne, although in some cases, prices rolled over.
Sources said that some European producers were still suffering restrictions to export product due to scheduled shutdowns for maintenance, with this the main cause of a slight drop in export prices.
Demand for PVC increased from the main consumers in the CIS countries in June and July on the back of seasonal factors propping up activity in end markets.
Deals for July shipments of suspension PVC to the CIS markets were done in the range of €710-785/tonne FCA (free carrier), down from June’s €720-810/tonne FCA.
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.