MOSCOW (MRC) - The most of Russian producers increased prices for polyvinyl chloride (PVC) with a few exceptions in October. High world prices and global shortages were the main reasons for the rise in prices in the Russian market, according to the ICIS-MRC Price Report.
For more than a year, the global PVC market has been demonstrating a constant rise in prices under the pressure of a deficit. This situation in the global scale affected the Russian PVC market. For the second year in a row, contrary to the seasonal factor and the expectations of many converters, Russian producers raise prices in the domestic market in the winter period. The price rise for November SPVC shipment in some cases reached RB20,000/tonne. At the same time, one of the producers rolled over October prices.
PVC prices continued to rise in several regions of the world under the pressure of the deficit in November. Thus, in Asia, prices rose by USD250/tonne and exceeded the level of USD2,000/tonne CFR for India. Prices exceeded USD2,300/tonne CFR in Turkey in in mid-October. Thus, the export parity for Russian producers turned out to be higher than the level of October prices on the domestic market.
There has been practically no import PVC fro Russian consumers since August. Chinese manufacturers and their acetylene PVC accounted for key imports during the summer months, but since late August, due to the COVID-19 outbreak, the Chinese authorities have been constantly restricting freight rail transport.
As a result, some Russian importers have not yet received Chinese PVC in full under the August contracts. It is also worth saying that some manufacturers from the north of China do not plan to export PVC sales to Russia until the end of the year. The demand for PVC in the Russian market, despite the record price levels, remains at a good level, although it is gradually decreasing.
But any free volumes are easily exported by domestic producers. Demand for PVC was mixed from local companies in November. Some converters actually intend to keeo the October volume of polymer purchases. Some converters plan to decrease PVC purchases this month, including because of the expectations of a decline in PVC prices in December.
Since the summer months, the range of prices for Russian PVC was quite large at manufacturers. Deals for November PVC supplies with K64/67 were in the range: Rb175,000-201,000/tonne CPT Moscow, including VAT for quantities up to 500 tonnes, compared to Rb155,000-201,000/tonne CPT Moscow, including VAT, in October.
MRC