Prices of Europe PVC for export to CIS countries up on higher ethylene, electricity costs

MOSCOW (MRC)–European polyvinyl chloride (PVC) prices for material exported to the CIS countries have risen on the back of higher ethylene and electricity costs.

Export prices increased by €95-100/tonne for November shipments, according to the ICIS-MRC Price report, following negotiations that began in the middle of last week.

The November ethylene contract was agreed up by €92.50/tonne from the previous month, which theoretically points to an increase of €47/tonne in the net cost of PVC production.

Electricity prices have also grown significantly for the past few months.

Disruptions in operations and scheduled shutdowns for maintenance at production capacities in Europe, as well as low PVC imports from the US, have negatively affected the balance of the European PVC market, including exports.

As a result, some buyers from the CIS countries reported an almost complete absence of PVC from some European producers for the past three months.

Overall, deals for November shipments of suspension polyvinyl chloride (SPVC) to the CIS markets were discussed in the range of €1,650-1,710/tonne FCA (free carrier), whereas the previous month’s deals were negotiated at €1,500-1,615/tonne.

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