MOSCOW (MRC)--All Russian producers of polyvinyl chloride (PVC) have announced price decreases of Russian roubles (Rb) 3,000/tonne ($51/tonne) for December contracts, compared to November, according to a MRC Price report.
A reduction in demand from the domestic market and a tangible decline in export prices in China prompted Russian PVC producers to significantly reduce their prices.
The situation repeated again in November, demand from the domestic market continues to decline, besides Chinese producers announced another tangible reduction in export prices of acetylene PVC.
Chinese producers in the second half of October began to reduce the export prices of acetylene PVC.
As a result, several companies resumed purchases of acetylene PVC, imports in November rose to 2,500 tonnes.
Chinese producers announced another decline in export prices, price offers fell below $800/tonne DAP (delivered at place) Moscow, for container shipments by rail.
Demand for PVC by Russian consumers in November was reduced under the seasonal factor.
Despite the reduction in purchases, part of the converters will enter in December with sufficient PVC stocks left since November.
Demand from a number of consumers will even more decrease in December, as in the middle of the month converters will begin to shut their capacities for long-term prevention.
Producers faced difficulties in selling PVC in the domestic market in November, as consumers were in no hurry to agree on deals and often forced competitors to compete with each other.
As a result, some converters have issued lower prices than those announced earlier this month. .
Reduction of demand in the domestic market, some producers tried to compensate by the growth in export volumes.
However, demand in foreign markets is not good enough to help Russian producers sell all PVC surplus.
Overall, deals for November SPVC shipments were agreed within the range of Rb62,000-63,000/tonne CPT (carriage paid to) Moscow, including VAT, for K=65/67 and for quantities up to 500 tonnes.
Negotiations over prices for resin with K70 started from Rb62,000/tonne CPT Moscow, including VAT, and higher.
($1 = Rb58.88)
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.