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PVC-S supplies from China to reduce

November 23/2010

MOSCOW (MRC) -- Imports PVC supplies from China to Russia expectedly continue reducing and for the first two November weeks made up about 4.7 KT, MRC analysts say. 

In September acetylene PVC supplies from China were reduced because cargo traffic through Alashankou-Dostyk crossing was limited during most of the month Ц there were anti-terror trainings in Kazahstan.


In October Chinese suppliers increased the resin shipments but mostly they fulfilled their obligations under July-August contracts. More than 80% of imports supplies early November were the supplies under September-October contracts.

One of the major factors that limited making of new contracts for PVC supplies in October-November can be rapid price growth in the Chinese domestic market that also affected exports prices. Last week the Chinese producers again increased exports prices for PVC  up to USD 1.090 Ц 1.120/т, DAF Dostyk.


Prices increase was caused by some lack of resin in China, because energy consumption was limited at many enterprises and the production facilities were reduced by 50%. Producers were forced to reduce resin exports supplies and to switch to the domestic market where PVC prices increased under the pressure of high demand.


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