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PVC imports to Russia still surpasses demand

April 07/2011

MOSCOW (MRC) -- Import supplies of suspension PVC to the Russian market keeps on surpassing demand. In March imports exceeded 40 KT, according to MRC DataScope.

In February Russian companies actively contracted PVC for March deliveries. Overall imports of suspension exceeded 43 KT last month which was 10 KT more than in February. Still main volumes of imports fall at trade companies whose share in the overall volume exceeded 63%. As expected, in March import deliveries of PVC-S from North America lowered to 17.3 KT. While the imports of acetylene resin from China doubled to 19.6 KT. The main reason for that is limited offer from North American producers.

Soon a further growth of the share of Chinese PVC in the Russian market is expected and the imports of North American resin will gradually decrease.

The reduction of exports quotes and a considerable growth of prices (more than USD 100/mt) from the North American producers of PVC will limit purchases from  Russian companies. 

On the other hand, Chinese producers may also limit export supplies for the Russian market. Despite a considerable growth of production capacities of acetylene PVC producers from the North of China who are traditional for Russian companies, demand for PVC in the domestic market has also considerably grown, as a result, export possibilities have been limited. Also a railway transit in the border of China and Kazakhstan is narrow and its capacity soon will play an important role in imports of acetylene suspension.

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