Russian producers rolled over July PVC prices for August delivery

MOSCOW (MRC)–Negotiations over August shipments of suspension polyvinyl chloride (SPVC) began in the Russian market in the late last week. Local producers announced August PVC prices at a rollover from July, according to ICIS-MRC Price Report.

Prices of Russian PVC  reached a historic high in the market in July due to strong seasonal demand and scheduled maintenance works of two large-scale plants at once.

Imported PVC was more profitable than the Russian raw materials, but this factor did not lead to a significant increase in external supplies.

Scheduled maintenances are coming to an end and the supply of SPVC should increase in the market in August.

Nevertheless, Russian producers intend to keep the July price level for August delivery, with a few exceptions.

Scheduled maintenance works of two major Russian PVC producers started from 7 July. SayanskKhimPlast was the first which shut its 350,000 tonnes/year for a month long turnaround. Bashkir Soda Company shut its SPVC production a week later (the annual production capacity is 250,000 tonnes/year).

Most domestic producers were aware of the shutdowns in July, and although import volumes were cheaper than domestic material this did not lead to an  increase in PVC imports.

The limited working capital of most consumers and the long-term supply of PVC from the main suppliers, China and the USA, are the main reasons for the small increase in external supplies.

There was no significant shortage of material in July. The only exception was K70 PVC because some consumers began to build additional stocks of raw materials since May.

Bashkir Soda Company finished turnaround this Monday; SayanskKhimPlast will resume production a week later, which should increase domestic availability.

August deals for K64/67 PVC were negotiated in the range of Rb80,500-82,000/tonne CPT Moscow, including VAT, for lots of less than 500 tonnes.

Discussions for K70 PVC started from Rb82,000/tonne CPT Moscow, including VAT, and higher.

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