MOSCOW (MRC)--There has been a shortage of suspension polyvinyl chloride (SPVC) in the world since the end of last year, with prices breaking new historical records, according to ICIS-MRC Price report.
The Russian market has followed global trends, there is sell-side pressure for further price rises in April, with some cases increases of Rb10,000/tonne or higher being discussed.
In March, PVC prices grew again in all regions of the world due to the shortage, and prices increased for April shipments on strong demand and tight supply.
Despite attractive prices in foreign markets, domestic sales are being pulled up to parity with export levels, with some SPVC grades at prices of more than Rb130,000/tonne for April shipments.
Russian converters did not have import alternative for prompt shipments, but many converters were not ready to accept new price records either.
The rise in PVC prices in Russia has carried on since last summer, and many converters were late transferring new prices of material onto their finished products, which has weighed on negotiations for April deliveries.
Offer prices from buyers in China for container shipments started at $1,260/tonne DAP Moscow, or given all taxes, it was about Rb122,000/tonne, including VAT and delivery, for resin with K=65. Due to the latest difficulties in logistics, the resin will reach the consumer no earlier than mid-May.
This year’s export sales of Russian SPVC are comparable to the level of 2020, which could incentivise producers to continue export shipments if domestic demand limits price potential.
Discussions on prices for April shipments of Russian PVC began in late March, but some producers postponed the start of negotiations several times.
Last week, deals for Russian resin with K64/67 were negotiated in the range of Rb121,500-130,000/tonne CPT Moscow, including VAT, for quantities of up to 500 tonnes, versus Rb116,000-120,000/tonne CPT Moscow, including VAT, in March.
Deals for resin with K=70 started from Rb130,000/tonne CPT Moscow, including VAT.
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.