Price negotiations for May delivery into the CIS markets began last week, according to the ICIS-MRC Price Report.
The May contract price of ethylene was agreed up by €20/tonne from April, which led to an increase of at least €10/tonne in PVC production costs.
Despite this, European producers had to cut export prices for supplies to the CIS markets due to low demand and high competition from other suppliers.
Demand for PVC from the main consumers was weak in March-April due to a long winter, and there was no significant surge for May shipment.
In addition, suppliers of North American PVC also significantly cut export prices in April and May, while in the Ukraine a producer announced a reduction in prices for May supplies.
The current easing of the euro against the dollar and other regional currencies is slightly improving the export positions in the CIS markets.
Negotiations over May shipments of suspension polyvinyl chloride (SPVC) to the CIS markets were held in the range of €735-780/tonne FCA (free carrier), whereas deals were done in the range of €755-800/tonne FCA a month earlier.
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.