Europe PVC producers reluctant to reduce export prices for CIS countries

MOSCOW (MRC)–Negotiations on the European polyvinyl chloride (PVC) prices for June delivery to the CIS markets have begun this week and, despite the reduction in the price of ethylene in the region, some producers are not going to reduce their PVC export prices, according to the ICIS-MRC Price Report.

The European June ethylene contract price was agreed down €35/tonne from the level of May, which makes it possible to talk about reducing the cost of PVC by €17.5/tonne.

European producers still have serious restrictions on exports due to the planned shutdowns for scheduled maintenance works and strong demand in the domestic market, and as a result, only a few producers have reduced PVC export prices.

Some producers have offered price reduction at the level of €10/tonne in comparison with the May price level.

In general, negotiations on June shipments of suspension PVC (SPVC) to the CIS markets are held in the range of €850-940/tonne FCA (free carrier) for K64/67 PVC. 

Prices for K70 PVC were offered on average up by €10-20/tonne.

Significant export restrictions have remained for several months. In particular, there were no price offers from the German company Vinnolit, while Polish Anwil plans to ship most of export orders after 19 June because of the shutdown for maintenances.

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