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MOSCOW (MRC) -- Negotiations on prices
of European polyvinyl chloride (PVC) for March shipments to the CIS markets
began this week. The rise in export prices from European producers continued, in
some cases the price increase was EUR100/tonne by February, according to the ICIS-MRC Price
Report.
March contract price of ethylene was agreed up by EUR75/tonne
from the previous month, which theoretically allows to talk about an increase of
PVC production by EUR33 per tonne compared to February. But a serious deficit
has been persisting for several months in the region, which was due to unplanned
shutdowns of several production facilities in Europe, and has recently been
intensified by shutdowns of capacities in the United States.
European
producers announced an increase in export prices for the markets of the CIS
countries in March by EUR75-100/tonne. The demand for PVC from the consumers
from the CIS countries is starting to gradually increase, despite the record
level of prices. The bulk of price offers accounted for K58/70 PVC.
The
supply of PVC for export from European producers was decreasing every month.
Some producers limited their export sales in favour of the domestic market. Some
buyers managed to agree on deliveries for 50% of the submitted order.
But
there were companies that did not manage to get confirmation of their March
shipments at all. Overall, deals for March shipments of suspension polyvinyl
chloride (SPVC) to the CIS markets were negotiated in the range of EUR1,085 -
1,145/tonne FCA, whereas the previous month"s deals were discussed in the range
of EUR985-1,045/tonne FCA. |
