Russian PVC prices rise in April talks
Sergey Karaichentsev
03-Apr-2017
MOSCOW (MRC)–Negotiations on April prices of
Russian polyvinyl chloride (PVC) began this week, with
producers announcing price increases of Russian roubles (Rb)
500-2,000/tonne ($8.89-35.55/tonne) from March,
according to ICIS-MRC’s
Price report.
Negotiations on April contract prices of Russian suspension
PVC (SPVC) began on Tuesday, and some converters were
slow to negotiate deals.
Since early 2017, producers have taken a tough stance on
resin prices and announced an increase of Rb500-2,000/tonne
in April prices. Demand for resin has been gradually growing
from converters, although not all converters intend to
increase their PVC purchasing in April.
A major strengthening of the rouble against the dollar since
the beginning of the year did not lead to higher imports. PVC
shipments from China remained insignificant, although Chinese
producers significantly reduced their prices of acetylene
resin for April shipments and deliveries are likely to
increase in the upcoming months.
Some market participants reported stronger demand for pipe
and sheet PVC, and they planned higher purchasing of resin in
April. The key consumers of resin, window profile producers,
have had no significant improvement in demand so far,
although in some cases, a growth in sales was still
registered.
Since mid-March, weight restrictions on freight road
transportation (restrictions on weight) have been introduced
in some regions, these restrictions will be in effect in each
region during the month and will be over in the country only
on 15 May.
Therefore, some producers were forced to introduce
restrictions on April shipments of resin, which also affected
the final cost of material for converters.
Deals for March shipments of Russian PVC were done in quite a
wide range: Rb65,000-67,500/tonne, including VAT and
delivery, for deals less than 500 tonnes. April deals were
discussed in the range of Rb66,000-68,000/tonne, including
VAT and delivery.
A more substantial price increase was registered in the
segment of resins with K = 70. Deals for April shipments were
negotiated in the range of Rb68,000-71,000/tonne, including
VAT and delivery.
($1 = Rb56.26)
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.
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