MOSCOW (
MRC) -- Global record high prices for suspension polyvinyl chloride (SPVC) proportionally affected prices of polymer in Russia. Russian producers intend to achieve an increase in prices of Rb10,000/tonne or more, according to the
ICIS-MRC Price Report.
PVC prices broke new records in many regions of the world in April due to a shortage; a number of producers also intend to increase prices for shipments in May further. Russian market was also affected by this trend, the situation on foreign markets has been putting serious pressure on PVC prices since the middle of last year. Since January of this year, Russian converters have got an import alternative, but it does not restrain the rise in prices in the market.
Domestic producers announced a price increase of Rb10,000/tonnes and more for May shipments.
The export prices from Russian producers remains at a good level, and prices in the domestic market were far from it in April. At the moment, the export prices from producers varies in the range of Rb132,000-150,000/tonne FCA, including VAT, FCA, depending on the region. And this factor has a huge impact on pricing in the domestic market.
After a long period of tight supply and rising prices for PVC in the domestic market, Russian converters got an import acetylene PVC from China in January. As a result, the volume of imports increased in the first quarter, but still does not allow balancing the Russian market and stopping the rise in prices. Today, taking into account all taxes, the price of Chinese acetylene PVC is about Rb125,000/tonne, including VAT, and delivery.
But complex logistics and limited export quotas from Chinese producers do not allow talking about the possibility of a serious increase in PVC supplies from China. Despite the record level of Russian PVC prices, the demand for PVC from the domestic market in the first four months was at a good level. Although export volumes in the first quarter still grew by 14%.
There was no surplus of PVC supply in the market, and the April quotas were actually sold by producers in the first ten days of the month. At the same time, the converters reported disruptions in shipments from at least two producers. PVC K58/70 accounted for the acutest shortage of export quotas.
Despite the long weekend ahead, discussions on prices for the May supplies of Russian PVC began only in the middle of the week, with some producers postponing the start of negotiations several times. This week, deals for the supply of Russian PVC with K64 / 67 were discussed in a very wide range: Rb135,000-150,000/tonne CPT Moscow, including VAT for volumes up to 500 tonnes, against Rb121,500-130,000/tonne CPT Moscow, including VAT in March.
MRC