European producers target roll over CIS export PVC prices for March

MOSCOW (MRC)–European polyvinyl chloride (PVC) producers are targeting roll over prices for product exported to the CIS markets in March, according to ICIS-MRC Price report.

Negotiations over March prices began this week after ethylene prices fell significantly in Europe this month.

The March contract price of ethylene was agreed down by €50/tonne from the previous month, which theoretically points to a reduction of €25/tonne in the net cost of PVC.

However, the balanced domestic market and strong demand from the key export markets allowed European producers to maintain export PVC prices at a high level.

By holding PVC prices steady, European producers were trying to compensate for a decrease in caustic soda margins.

Demand for PVC rose from consumers in the CIS countries in March because of seasonal factors, and it was basically focused on the procurement of resin with K=58 and K=70. European producers had no export restrictions, with a few exceptions.

Buyers reported the ambition of some manufacturers to achieve an increase of €5/tonne from February for PVC export prices with K=70, but consumers resisted any attempts to raise prices amid lower feedstocks.

Overall, deals for March shipments of suspension PVC (SPVC) to the CIS markets were negotiated in the range of €725-790/tonne FCA (free carrier).

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