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MOSCOW (MRC) -- Negotiations over
prices of European polyvinyl chloride (PVC) for April shipments to the CIS
countries began last week. A shortage continued to put a major pressure on
European producers" export prices, in some cases, a price increase was
EUR100/tonne from March, according to ICIS-MRC Price
report.
The April contract price of ethylene was settled up by
EUR40/tonne from the previous month, which theoretically allows to talk about an
increase of EUR20/tonne in the net cost of PVC production. But in the past few
months, the deficit was the determining factor in the market, and it was the
shortage of polymer in the market that had led to a three-digit rise in export
PVC prices. European producers announced an increase in export prices for the
CIS countries in April by an average of EUR100/tonne.
Seasonal factors
has started to play an increasing role in demand for PVC, many converters
continue to gradually raise their capacity utilisation. But export quotas of
European producers, on the contrary, decreased more and more with every
passing month. Unstable operations at some producers" production capacities and
strong demand led to an acute shortage of PVC in Europe.
Resin with
K=58/70 accounted for the cutest shortage of export quotas. Many market
participants could not fully meet their needs in this PVC from European
producers. At the same time, it is often possible to agree on deliveries of no
more than 50% of the submitted enquiry.
Overall, deals for
April shipments of suspension polyvinyl chloride (SPVC) to the CIS markets were
negotiated in the range of EUR1,185-1,245/tonne FCA, whereas the previous
month"s deals were discussed in the range of EUR1,085-1,145/tonne FCA. |
