MOSCOW (MRC) -- The weakening of the Russian rouble against the dollar accelerated in the first week of November. In this situation, many Russian companies refused to buy suspension polyvinyl chloride (SPVC) in foreign markets, according to ICIS-MRC Price report.
Seasonal factors and the start-up of RusVinyl already led in October to a major reduction in purchasing of polyvinyl chloride (PVC) in foreign markets by Russian companies. Tge rapid devaluation of the Russian rouble against the dollar in early November virtually paralyzed all import purchasing of PVC, local companies switched to domestic material.
Chinese producers are the key foreign SPVC suppliers to Russia. They account for about 63% in total imports. Chinese producers still maintained their export prices of acetylene PVC for November shipments in the range of USD810-840/tonne DAP Dostik. Given such prices in China and the dollar exchange rate against the rouble (at 46), prices of acetylene resin, including delivery to the central part of Russia, were at about Rb59,000/tonne, including VAT, up by an average of Rb9,000-10,000/tonne from contract prices of Russian producers.
The situation was similar with the PVC purchasing in the United States. Offer prices for November shipments of North American PVC dropped to USD940-960/tonne CFR St Petersburg on the back of several factors. But prices of North American PVC reached the same level as prices of Chinese material because of the dollar exchange rate.
Such a huge difference in price between Russian polymer and imported material made many companies to completely stop purchasing PVC in foreign markets.
MRC