September prices of European PVC drop for CIS markets

MOSCOW (MRC)–Europe September delivery polyvinyl chloride (PVC) price talks to CIS markets began this week, with many producers reducing prices on the back of lower raw materials costs, according to the ICIS-MRC Price Report.

The September contract price of ethylene was agreed down by €40/tonne from August, which theoretically should lead to a decrease of €20/tonne in PVC production costs.

The demand for PVC from a number of consumers in the CIS countries is not high in September, with many consumers reducing their purchases because they expect further price drops in the coming months. But due to technical problems, some plants have temporary restrictions in export supplies.

Several producers were considering reducing export prices by €20-30/tonne compared to August. One of the producers does not plan any price cuts this year.

Overall deals for September shipments of suspension PVC (SPVC) to the CIS markets were held in the range of €710-765/tonne FCA (free carrier).

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