MOSCOW (MRC)--Prices of May shipments for European polyvinyl chloride (PVC) to CIS markets rose €100/tonne on short supply, according to ICIS-MRC Price report.
Export prices for European producers were driven up by the acute shortage of material, mirroring the €100/tonne in April.
The May contract price of ethylene was agreed up by €5/tonne from the previous month, which theoretically allowed to talk about the same net cost of PVC production, compared to April.
Since last year, a shortage of resin both in domestic and export markets has been the main factor in the pricing of producers in Europe.
Seasonal factors predetermined a gradual increase in demand for PVC, whereas the availability of resin was only decreasing from several European producers because of scheduled and unscheduled shutdowns of production capacities.
Since the beginning of the year, export quotas of European producers have been decreasing from month to month for the CIS markets. In May, some producers plan to start export shipments only in the third decade of the month.
Resin with K=58/70 accounted for the acutest shortage. Many buyers could not fully meet their needs in this PVC from European producers during several months.
Overall, deals for May shipments of suspension polyvinyl chloride (SPVC) to the CIS markets were in the range of €1,290-1,350/tonne FCA, whereas the previous month's deals were discussed in the range of €1,190-1,140/tonne FCA.
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.