December prices of Russian PVC rolled over from November with a few exceptions

MOSCOW (MRC)–The seasonal decline in demand did not affect polyvinyl chloride (PVC) prices in the Russian market with most producers agreeing to roll over December prices, according to the ICIS-MRC Price Report.

There was a noticeable decrease in PVC prices in Asia in the second half of November, including in China. In other regions, the price situation was steady, prices remain at a record high. A similar situation was in the Russian PVC market.

The seasonal decline in demand for the second month in a row does not put pressure on PVC prices in Russia.

Local producers agreed to roll over the November price level for December shipment, but in some cases, converters also reported that prices have increased up by roubles (Rb)5,000/tonne.

Imports of suspended PVC in the current year increased by 31% compared to the same time in 2020 and reached almost 55,800 tonnes in ten months.

A significant increase in demand meant that imports could not saturate the Russian market with PVC.

The bulk of imports comes with long delays due to global problems with logistics, which also impacts the work of converters. In a number of areas, imported PVC is much cheaper than Russian material, but it is more an alternative in theory.

Exchange rate risks and difficulties with logistics in the last couple of months have led to a significant drop in PVC purchases in foreign markets, and this situation is unlikely to change in the near future.

Negotiations on the December shipment of Russian PVC started in the middle of last week, but not all producers started discussing supplies.

Discussions continued this week, but they were unsuccessful for the converters – PVC did not fall in price, and in some cases even rose in price again.

Since the summer months, the range of prices for Russian PVC was quite large at manufacturers. Deals for December PVC supplies with K64/67 were in the range of Rb175,000-201,000/tonne CPT Moscow, including VAT. PVC K 70 from one of the producers has risen in price.

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