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PVC prices keep rising in Russia in October

October 01/2020

MOSCOW (MRC) - The situation in the global suspension polyvinyl chloride (SPVC) market and the devaluation of the rouble continue to put pressure on prices in the Russian market. Russian producers announced a further price increase of Rb2,000-3,000/tonne, according to ICIS-MRC Price Report.

Russian producers traditionally cut SPVC prices in September - October in the previous years in the domestic market, including due to a decrease in demand. The current year was not typical for both the Russian and the global PVC markets in general.

Tight PVC supply in several regions of the world and record price levels put a serious pressure on PVC prices in Russia, as well as the weakening of the rouble. Russian producers also intend to achieve a price rise of Rb2,000-3,000/tonne for October shipments.

The demand for SPVC from Russian converters in September was at a good level, although some converters were cautious about purchases at the beginning of the month. At the same time, supply of PVC K58/70 has been tight since the middle of summer due to insignificant imports and problems with production from some producers.
Many converters intend to reduce the volume of PVC purchases in October, wishing to optimise their stocks of raw materials and finished products by November.

Nevertheless, weaker demand does not affect the prices of PVC from Russian producers, since the latter have an increased demand for PVC from consumers from other regions of the world. In addition, in some areas of export, PVC prices were significantly higher than the prices that Russian producers offer for supply to the domestic market in October. In particular, in Turkey last week PVC prices exceeded USD1,200/tonne CFR Istanbul. Prices in Asia have exceeded USD1,000/tonne CFR. Kaustik Volgograd plans to shut its 90,000 tonnes/year PVC capacities for the turnaround  in the first ten days of October.

For most consumers in Russia, the current price situation was not typical. Buyers were used to the fact that in previous years, prices have been gradually decreasing since September until the end of the year.

And, as a result, consumers were not ready for the next wave of SPVC price increases. October deals for Russian PVC with K64/67 were negotiated in the range of Rb83,000-86,000/tonne CPT Moscow, including VAT, for quantities of less than 500 tonnes.
Author:Anna Larionova
Tags:CIS, PVC, EPVC, PVC paste, SPVC.
Category:General News
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