The March ethylene contract was agreed down by €20/tonne, which presupposes the decrease in PVC production costs by at least €10/tonne.
Nevertheless, despite the decline in the price of the feedstock, many European producers announced an increase in export prices for supplies to CIS markets by €10-25/tonne.
Demand for PVC from main consumers is still quite low due to seasonal factors, while European producers have not activated sales in this direction for the past two months.
One of the producers has deliberately kept the higher price level since February to limit or completely cut off its sales to the CIS.
Negotiations on March deliveries of suspension polyvinyl chloride (SPVC) for the CIS markets were done in a range of €750-810/tonne FCA (free carrier), while February deals were done at €725-800/tonne FCA.
One of the producers has kept prices at the level of €850-870/tonne FCA since February, but no deals were reported at these prices.
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.