MOSOCW (MRC) - Negotiations on European polyvinyl chloride (PVC) prices for August delivery into the CIS markets were actively conducted last week. Despite a slight increase in ethylene prices, European producers did not proportionally increase in PVC export prices, according to ICIS-MRC Price report.
August contract price of ethylene was agreed up by EUR10/tonne from July, which theoretically should lead to an increase of EUR5/tonne in PVC production costs.
Nevertheless, despite a slight increase in the cost of the main raw material, ethylene, European producers rolled over the August export prices of PVC for deliveries to the markets of the CIS countries in August.
Demand for PVC increased from the main consumers in the CIS countries in July-August under the pressure of seasonal factor and tight supply from domestic producers. But due to planned and unscheduled shutdowns of some plants, some producers limited export quotas, in particular K70.
Deals for August shipments of suspension PVC (SPVC) to the CIS markets were held in the range of EUR710-785/tonne FCA.
MRC