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MOSCOW (MRC) - The shortage of
suspension polyvinyl chloride (SPVC) remained in the world, and in recent weeks
it has been exacerbated by a series of force majeure shutdown of the largest US
producers. Many producers announced further price rise for March shipment;
Russian producers also announced price increase for March shipment, according to
the ICIS-MRC Price
Report.
World PVC prices have been dynamically growing since the
middle of last year due to tight supply. Export prices fell slightly in some
regions in January, including in China. But already in the second half of
February, the situation changed dramatically due to a series of unplanned
shutdowns of key producers in the United States.
After a short pause,
Russian producers also announced their plans to increase prices by roubles (Rb)
4,000-5,000/tonne in March. Domestic PVC prices in China decreased in January,
so export prices were also cut, including for Russian buyers.
The lower
price level in China in comparison with domestic material led to a surge in
demand from Russian companies.
And by mid-February, the first volumes of
Chinese acetylene PVC began to appear on the Russian market this
year.
Russian converters have a hope that the arrival of an imported PVC will
temporarily stop the rise in PVC prices, which has not stopped since June last
year.
But since this week, the situation in the Chinese domestic market
began to change sharply, PVC prices began to rise dynamically. During the week,
prices rose by more than 15%.
And along with the rise in domestic prices,
Chinese producers began to adjust export prices, one of the producers announced
an increase in export prices for March shipments by USD200/tonne compared to the
level at the beginning of February.
Despite the winter period, when the
demand for polyvinyl chloride in the market is at a minimum, Russian producers
do not have an excess of polymer. Moreover, PVC with K70 is in small shortage.
At the same time, there was virtually no import alternative.
Negotiations
over March shipments of Russian PVC began on Tuesday, deliveries of Russian PVC
with K64/67 were discussed in the range of Rb116,000-120,000/tonne CPT Moscow,
including VAT, for quantities of less than 500 tonnes versus
Rb112,000-115,000/tonne CPT Moscow, including VAT. |
