European producers slightly reduced their export prices amid stability in ethylene prices in the region.
The August contract price of ethylene was agreed at the level of July, which did not affect the net cost of PVC production. However, despite this fact, European producers had to reduce export prices for deliveries to the CIS markets even amid shutdowns for maintenance at several plants.
This month’s demand for PVC was weak from the main consumers in the CIS countries, except for demand for resin with K=70. Demand for this PVC is strong, whereas supply is tight.
Some of European producers’ production capacities are idle, conducting turnarounds, the others have equipment interruptions because of the heat. And these factors affected export sales of some producers, but there was no acute shortage.
Negotiations over August shipments of suspension polyvinyl chloride (SPVC) to the CIS markets were held in the range of €735-790/tonne FCA (free carrier), whereas deals were done in the range of €745-800/tonne FCA a month earlier.
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.