Russia PVC producers seek May hikes on record-high global prices

MOSCOW (MRC)–Russian polyvinyl chloride (PVC) producers are seeking substantial price hikes for May shipments on the back of record-high global prices impacting the country’s domestic market.

High prices have been pressuring the Russian market since the middle of last year and producers have announced targeted rises of roubles (Rb) 10,000/tonne (€111/tonne) and more, according to the ICIS-MRC Price Report.

Russian export prices remain strong while those in the domestic market were much lower in April.

Export prices currently range from Rb132,000-150,000/tonne FCA (free carrier), including VAT, depending on the region. This price level has a significant impact on domestic pricing.

Tight supply and complex logistics have also contributed to the current market dynamic.

Deals for the supply of Russian PVC with K64/67 were discussed in a very wide range: Rb135,000-150,000/tonne CPT (carriage paid to) Moscow, including VAT, for volumes up to 500 tonnes, against Rb121,500-130,000/tonne CPT Moscow, including, VAT in March.

(€1 = Rb89.73)

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