MOSCOW (Market Report) - Negotiations on the Russian polyvinyl chloride (PVC) price for June delivery were quite difficult, contrary to the experience of past years, producers had to reduce prices, according to the ICIS-MRC Price Report.
Negotiations on the June contract prices of Russian suspended PVC (SPVC) began last week, and at the initial stage of approval, producers announced the rollover of the May price level. Converters did not hurry to confirm the prices, the negotiations delayed.
The active process of concluding deals began only in the middle of the last week, the converters managed to achieve a reduction in prices of Rb1,500 - 2,000/tonne. The demand for PVC in the market has been gradually growing from month to month, but the growth is not as dynamic as the growth in supply of raw materials.
SPVC supply in Russia grew by 11% in the first four months of the year compared to the same time of 2016. The excess in PVC supply began to be seen in April, when the import of acetylene PVC from China began to grow dynamically.
The imports of Chinese PVC grew even more in May and in the first three weeks of the month exceeded 11,000 tonnes. Some major Russian converters partially closed their needs in PVC through purchases in China.
The influx of imports of polyvinyl chloride forced Russian producers to take a non-traditional step for the current period of time - a reduction in prices.
Deals for June delivery were discussed in the range of Rb65,000-67,000/tonne CPT Moscow, including VAT for deals up to 500 tonnes.
Resin with К 70 has fallen in price more essentially, deals were discussed in a range of Rb66,000 - 68,000/tonne, including VAT, and delivery, whereas a month earlier deals were concluded in the range of Rb68,000 - 70,500/tonne, including VAT, and delivery.
MRC