MOSCOW (
MRC) - Stronger demand for suspension polyvinyl chloride (SPVC) from the Russian converters continues to contribute to the price rise. Some Russian producers have reported another increase in prices, according to
ICIS-MRC Price Report.
Devaluation of the rouble in December and the growth of domestic production (RusVinyl was launched in September) made PVC imports in Russia expensive. Local converters in the last few months completely shifted to the purchase of feedstock at domestic producers.
At the same time, stronger demand and the shortage of imported material have a significant impact on prices.
Given these facts some producers announced a further increase in the price of polyvinyl chloride (PVC) of Rb2,000/tonne, compared with the level at the beginning of March.
The negotiation on March contracts for Russian PVC began in the last week of February. Local producers managed to price rise to Rb57,500-60,000/tonne CPT Moscow, including VAT, up Rb4,000/tonne compared with the level in February.
However, some producers said that demand in March has increased significantly compared to the winter months, and now converters' orders significantly exceed the production capacity of the producers. Comes to the fact that the deals are done for the resin, which is not produced yet.
Last week Bashkir Soda Company and Kaustik Volgograd announced a further increase in the March contract prices of SPVC. SPVC prices have risen on average by Rb2,000/tonne, compared with the level at the beginning of the month, the deals are done in the range of Rb60,000-61,500/tonne CPT Moscow, including VAT provided full advance payment. The deals for the resin under 30-days deferred payment were on average up by Rb1,000/tonne.
Converters reported that they had to accept further price increase because of the imports shortage. Even with the reduction in export PVC prices in China, the cost for acetylene PVC with the delivery to the central regions exceeds Rb67,000/tonne, including VAT.
At the same time, companies said that because of the low demand and strong competition prices for finished PVC goods increased not proportionally to the price of the feedstock. At the moment, many converters work at a loss.
MRC