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Russian producers had to decrease December PVC contract prices

December 04/2017

MOSCOW (MRC) -- Negotiations on December shipments of suspension polyvinyl chloride (SPVC) began among Russian producers and converters on 28 November. All producers announced a Rb3,000/tonne price reduction from November, according to ICIS-MRC Price report.

A serious reduction in demand from the domestic market and a tangible decline in export prices in China made Russian producers to make a significant reduction in PVC prices in November. The situation repeated again in November, demand from the domestic market continues to decline, besides Chinese producers announced another tangible reduction in export prices of acetylene PVC.

Negotiations on December supplies of Russian PVC started and taking into account all above said producers had to reduce prices by Rb3,000/tonne or more in comparison with the November level. Chinese producers in the second half of October began to dynamically reduce the export prices of acetylene PVC.

As a result several companies resumed purchases of acetylene PVC, imports in November rose to 2,500 tonnes.
Chinese producers announced another decline in export prices, price offers fell below USD800/tonne DAP Moscow, for container shipments by rail.

Demand for PVC by Russian consumers in November seriously reduced under the pressure of the seasonal factor, despite the reduction in purchases, part of the converters will enter in December with sufficient PVC stocks left since November.

Demand from a number of consumers will even more decrease in December, as in the middle of the month converters will begin to shut their capacities for long-term prevention. Producers faced difficulties in selling PVC in the domestic market in November, as consumers were in no hurry to agree on deals and often forced competitors to compete with each other. As a result, some converters have managed to achieve lower prices than announced earlier this month.

Reduction of demand in the domestic market, some producers tried to compensate by the growth in export volumes.
But demand in foreign markets is not good enough to help Russian producers sell all PVC surplus.

Negotiations for the December supplies were similar to the November ones, the converters were not in a hurry to agree the deals and are trying to achieve the maximum possible concessions. Overall, deals for November shipments were done in the range of Rb62,000-63,000/tonne CPT Moscow, including VAT, for K=65/67 and for quantities up to 500 tonnes. Negotiations over prices for resin with K70 started from Rb62,000/tonne CPT Moscow, including VAT, and higher.
Author:Anna Larionova
Tags:PVC, EPVC, SPVC, Russia.
Category:General News
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