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January PVC prices to rise in Russia by a record amount

December 29/2020

MOSCOW (MRC) -- A shortage and record high prices of suspension polyvinyl chloride (SPVC) in the global markets for over than 10 years have led to a similar situation in Russia. Domestic producers announced another and record-breaking price hike for January shipments, which was not seen during the whole history of the price increases, according to ICIS-MRC Price report.

This year has become unusual for the global PVC market. The shortage of PVC has remained in many regions of the world since summer, and prices have been hitting further records over the past more than 10 years. In the first quarter of 2021, the situation in the global PVC market is unlikely to change dramatically. The Russian PVC market is not isolated from the global one, all global events immediately have consequences for Russian consumers. Russian producers intend to achieve a price rise of Rb15,000-20,000/tonne for January shipments of suspension. 

Demand for resin from Russian processors has been subsiding for the past two months, but at the same time, domestic producers had insignificant stocks. And, as a result, many consumers did not have the opportunity to build up additional inventories of material even amid constant price increases.

Traditionally, in January, demand for SPVC from Russian converters is the lowest for the whole year due to the long New Year holidays and the plants" scheduled shutdowns for maintenance. But most consumers are in no position to refuse from January purchases partially due to the fact that it was not possible to build up additional inventories in the previous months.

Prices rose again for January shipments in many regions of the world, breaking another record. And for some buyers, SPVC prices exceeded USD1,500/tonne CFR. As a result, the import alternative was virtually completely absent for Russian consumers in comparison with domestic material. Even given the planned price increase for January shipments, Russian PVC was still cheaper than its imported analogues.

The absence of alternatives and the need to replenish their inventories did not give consumers a choice. It will not be possible to avoid another wave of price increases, and converters were trying to limit the rise in PVC prices in their negotiations.

Negotiations over January shipments of Russian PVC began on Wednesday, prices of Russian PVC with K64/67 were discussed in the range of Rb111,000-115,000/tonne CPT Moscow, including VAT, for quantities of less than 500 tonnes.
Author:Margaret Volkova
Tags:PVC, SPVC, Russia.
Category:General News
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