Russian producers increased April PVC contract prices

Moscow (MRC) - Negotiations on April polyvinyl chloride (PVC) prices began in Russia this week. Expectedly, Russian producers announced their intention to achieve price increases of roubles (Rb) 2,000-3,000/tonne, according to ICIS-MRC Price Report.

Negotiations on April polyvinyl chloride (PVC) prices began in Russia on Monday, 23, March. Russian producers expectedly announced their plans to increase contract prices for April PVC on the back of high demand and lack of imported material.

The price rise was discussed at the level of 2,000-3,000/tonne, compared with the level in the early March.
Discussions on April contract prices for for K64 and K67 PVC were done in the range of Rb59,500-62,000/tonne CPT Moscow, including VAT. Deals for K58 and K70 PVC were negotiated up by Rb1,000/tonne.

The demand for PVC from local converters continues to grow, while the capacities of Russian producers are actually at their limit. Some converters said they plan to resume PVC purchasing in China. The relatively low level of export prices in China for acetylene PVC and the current strengthening of the rouble against the dollar did this material actually comparable in price with the Russian PVC. It refers to the Siberian region. In the central part of Russia, where number of consumers is high, the price for Chinese PVC with the delivery continued to be high.
MRC

MOSCOW (MRC) -- The overall imports of polyethylene (PE) into the Republic of Belarus decreased in January 2015 by 14.3% and totalled 5,800 tonnes. Imports of high density polyethylene (HDPE) fell almost by half, reported MRC analysts.

According to the National Bureau of Statistics of Belarus, January PE imports to Belarus were 5,800 tonnes versus 6,700 tonnes in January 2014 and 10,400 tonnes in December 2014. Such a slump in PE imports was caused by both weaker demand and restrictions on the foreign currency purchasing, which were introduced in December to stabilize the exchange rate of the Belarusian rubel. HDPE accounted for the main fall in imports, whereas shipments of linear low density polyethylene (LLDPE) and low density polyethylene (LDPE) increased.

The structure of PE imports to Belarus by grades looks the following way over the stated period.

The overall January imports of LDPE and LLDPE to the local market rose to 4,200 tonnes versus 3,300 tonnes in January 2014 and 5,800 tonnes in December 2014. The producer from Saudi Arabia with imports of 3,200 tonnes over the said period was the key supplier in this segment.

Imports of high density polyethylene (HDPE) fell to 1,600 tonnes in January versus 3,400 tonnes in January 2014 and 4,700 tonnes in December 2014. Russian producers with imports of about 700 tonnes and producers from Saudi Arabia with imports of just over 360 tonnes were the key HDPE suppliers to the domestic market over the stated period.
MRC

MOSCOW (MRC) - The market capacity of PET chips in Russia decreased to 83,900 tonnes in January-February 2015, down 22%, according MRC ScanPlast.

The reduction of the consumption from Russian converters was in line with the decrease of import purchases and increased demand for Russian PET. As it was previously reported, PET production in Russia in January-February 2015 was 79,300 tonnes, up 13% year on year.

The growth of the capacity utilisation at Senege and Alco-Naphtha in the season will help to further increase the share of Russian PET consumption.
Russia's PET imports decreased to 8,140 tonnes tonnes in January and February, down 5 times compared to the same period a year earlier.

Russia's imports of Lithuanian PET decreased in January and February 2015. January's imports Lithuanian PET produced by Neo Group were about 600 tonnes. February's imports of PET from Neo Group into Russia reduced to 122 tonnes.

The drop of the euro against the dollar will lead to a temporary increase in the buying interest for European PET. Imports of Lithuanian PET continued to be low so far.
Export shipments to foreign markets in January-February increased by 42% compared to the same period a year earlier, but generally remained low, compared with the total PET production in the country. Russia's exports of PET totalled 3,800 tonnes in the first two months of the year. The main exporter of PET to foreign markets remains Alco-Naphtha, based in Kaliningrad.


MRC

MOSCOW (MRC) -- SIBUR has announced an increase of USD120-130/tonne from March in its export prices of expandable polystyrene (EPS) for April shipments, according to ICIS-MRC Price report.

Initially, buyers received higher offer prices. Importers in Ukraine received the price of USD1,580/tonne FCA Voronezh, excluding VAT, up by USD140-150/tonne from March. Later, the plant reduced its April prices from the initially announced level. Thus, export prices were set at USD1,550/tonne FCA Voronezh (USD1,520/tonne FCA Perm), excluding VAT.

Buyers of EPS of Alphapor grade (SIBUR-Khimprom) in the Russian domestic market said they also expect contract prices to increase in April. Some market players said the plant's prices might grow by Rb3,000/tonne FCA, including VAT.
MRC

MOSCOW (MRC) -- The overall production of polyethylene terephthalate (PET) chips in Russia rose in January and February 2015 by 13% year on year and totalled 79,300 tonnes, according MRC ScanPlast report.

Polief and Alco-Naphtha increased their output in January and February. Polief's increased production over the stated period was caused by the launch of a new line in February 2014. In January 2014, Bashkir Polief produced 13,300 tonnes of PET chips, whereas the plant's output was almost 19,000 tonnes in January 2015.

In its turn, the increase production at Alco-Naphtha (in January-February 2015 compared to the same period of 2014) was caused by the outage of the plant in February 2014.
Traditionally, production decreases in February compared to January mainly because of fewer days in the month. This year was no exception. The February PET production in Russia totalled 37,500 tonnes, down by 10% from January. The average capacity utilisation of the industry was almost 74%. At the same time, Kaliningrad plant Alco-Naphtha and Solnechnogorskiy plant - Senezh - remained with underutilized capacities.

MRC