MOSCOW (MRC) -- MRC news digest as of 03.08.12.
1. Federal Antimonopoly Service is questioning PVC converters.
MOSCOW (MRC) -- Federal Antimonopoly Service (FAS) of Russian Federation keeps investigating the case of cartel agreement in the PVC market. The executive department has begun interviewing clients of Russian SPVC makers, report MRC analysts. FAS brought an action for violation of antimonopoly legislation against Russian PVC makers (PLASTKARD, KAUSTIK, SayanskKhimPlast), suspecting them in cartelization. The United Trading Company, Sibmanagement Group have also fallen under suspicion of FAS. In August Russian converters started to receive letters from FAS with the request to answer a few questions regarding operating conditions and to provide information on purchases of PVC from these companies during the period of 2004-2006. Many converters, in their turn, do not share FAS’s opinion as regards cartel agreement in the PVC market.
2. Hurricane Isaac to worsen PVC shipment from US.
MOSCOW (MRC) -- An emergency situation was declared in the Louisiana State faced with the nearing storm Isaac. The shipments from Houston were suspended, which will worsen the ongoing delay in delivery of PVC from the U.S., as per MRC analysts. President Barack Obama declared the state of emergency in Louisiana on approaching of tropical storm Isaac. The operation of the plants as well as shipments had been stopped because of the oncoming hurricane until August, 30. The shipment of goods in the port of Houston was also suspended.
3. Russian PS to increase by Rb7,000/tonne in September.
MOSCOW (MRC) -- A high demand for polystyrene, as well as a big number of scheduled maintenances may result in the price hike of Russian polystyrene by Rb5,000-7,000/tonne for September, as per MRC analysts. The demand in the Russian market of polystyrene has been steadily growing since the beginning of 2012, both for the general purpose polystyrene (GPPS), and for the high impact polystyrene (HIPS). The peak of consumption fell on the second and third quarters of the year. However, the supply of the polystyrene has tightened in the Russian market.
4. China increased PVC import by 27% in July.
MOSCOW (MRC) -- In July, Chinese traders increased PVC import to 81,400 tonnes, up 27% from June. The year-to-date PVC import to China exceeded 554,000 tonnes, report MRC analysts. Last month Chinese traders significantly raised PVC imports amid rising seasonal demand and a major price cut. Meantime, PVC export from China dropped in July by 19% from June and made about 15,800 tonnes.
5. PVC prices in Russia will rise in September.
MOSCOW (MRC) -- Russian makers are going to get higher PVC prices for September shipments. Negotiations regarding contract September prices have just begun, but some market participants already report that one of the makers has raised the price by Rb2,000/tonnes, report MRC analysts. On Tuesday negotiations on the level of Russian PVC contract prices for September shipments started in the Russian market. Expectedly, Russian makers plan to achieve an increase in prices for September shipments on the back of tightened PVC supply in the domestic market and price rise in the foreign markets. In the foreign markets PVC prices keep growing. The most considerable price rise is expected in Europe. Some European producers have already announced a price rise of PVC for September shipments by EUR140/tonnes from August level (EUR750-810/tonnes, FCA).
6. European producers to increase PE prices in September.
MOSCOW (MRC) -- European negotiations on the prices of PE for September are on the sidelines, waiting for the setting of ethylene prices. However, some market players have announced a significant increase in prices of polyethylene by EUR100-150/tonne, as per MRC analysts. In recent months, amid the highly volatile oil prices the formation of monomer contract prices in Europe are deferred to the last day of the month. The contract price of ethylene in Europe for September has not been agreed yet. As a consequence, European makers do not hurry to form the prices of polyethylene.