April prices of European PVC rose by three-digit amount for CIS markets

Author: Sergey Karaichentsev

2021/04/07

MOSCOW (MRC)--Price negotiations for April shipments of European polyvinyl chloride (PVC) to the CIS countries are shaped by short supply, according to ICIS-MRC Price report.

A shortage continued to put major pressure on European producers’ export prices in some cases rising €100/tonne on March's levels.

The April contract price for ethylene settled up by €40/tonne from the previous month, which theoretically allows for an increase of €20/tonne in the net cost of PVC production.

In the past few months, however, the deficit was the determining factor in the market, and it was the shortage of polymer in the market that had led to a three-digit rise in export PVC prices.

European producers announced an increase in export prices for the CIS countries in April by an average of €100/tonne.

Seasonal factors are starting to play an increasing role in demand for PVC, with many converters continuing to gradually raise their capacity utilisation.

Export quotas for European producers have decreased more and more with every passing month. Unstable operations at some producers' production capacities and strong demand led to an acute shortage of PVC in Europe.

Resin with K=58/70 accounted for the most acute shortage of export quotas. Many market participants could not fully meet their needs from European producers.

Overall, deals for April shipments of suspension polyvinyl chloride (SPVC) to the CIS markets were negotiated in the range of €1,185-1,245/tonne FCA, whereas the previous month's deals were discussed in the range of €1,085-1,145/tonne FCA.

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