Europe PVC prices for export to CIS countries down on lower ethylene

06 July 2017 11:00 Source:ICIS News

MOSCOW (MRC)--Negotiations over prices of European polyvinyl chloride (PVC) to be shipped in July to the CIS countries began this week, with producers significantly reducing export PVC prices under the pressure of lower ethylene prices in the region, according to the ICIS-MRC Price report.

The July contract price of ethylene was agreed down by €50/tonne from June, which gives a possibility to talk about a reduction of €25/tonne for PVC prices.

Some European producers announced a proportional cut in their PVC prices, others reduced their export prices more substantially.

Some producers' price reductions were discussed at €30-60/tonne from June.

In general, negotiations over July shipments of suspension polyvinyl chloride (SPVC) to the CIS countries were being held in the range of €800-870/tonne FCA (free carrier), whereas June deals were done in the range of €830-930/tonne FCA.

Most European producers had major restrictions on PVC exports in March-June 2017. Most suppliers' export quotas increased significantly in July, which was one of the reasons for a major fall in export prices.

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

By Sergey Karaichentsev