MOSCOW (MRC) - Negotiations on suspension polyvinyl chloride (SPVC) prices for June delivery began in the Russian market last week. Producers aim to achieve price increases, converters, on the contrary, want to get roll over of May PVC prices for next month's delivery, according to ICIS-MRC Price Report.
In most cases, Russian producers announced price increases up to Rb1,000/tonne in comparison with the level in May. At the same time, they said that it was already hard enough to achieve even such a rise in prices because of the rouble strengthening against the dollar and the better availability of imported material.
Back in late April, Russian producers faced strong resistance of converters for increasing PVC contract prices in the domestic market. Constant increase in the feedstock prices, problems with crediting and weak sales of finished products made local converters limit the appetite of producers even amid the complete absence of imported material.
As a result, some producers increased May PVC contract prices by Rb1,500/tonne compared with the level in April, some companies had to roll over the April PVC prices. May PVC deals were done in the range of Rb59,000-63,500/tonne CPT Moscow, including VAT.
A similar situation is with the June contract prices. Producers said that negotiations on June PVC deliveries were quite difficult, because the converters did not agree with the increase in prices.
The biggest resistance comes from the producers of profile-moulded products, in particular, producers of window profiles, where the competition is one of the highest. Some converters reported that they managed to achieve the May PVC prices for June deliveries, some companies had to accept the price increases.
MRC