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MOSCOW (MRC) -- One of the biggest North American suppliers of PVC to
Russia declared force-majeure on 14 April. It will significantly reduce PVC
export quotes for the Russian market, according to ICIS-MRC Price Report.
Georgia Gulf, one of the biggest North American PVC producers, declared
force-majeure for PVC deliveries because of limited supplies of the
feedstock for its production. The main supplier of ethylene for Georgia Gulf
reduced deliveries that affected production process. Problems with production at
the chlorine enterprise in Louisiana resulted in decreased production by 33%
and, as a result, affected Georgia Gulf work. As per company’s estimates, the
present situation will limit PVC deliveries within a few next months.
The Russian market of PVC appeared among those who may suffer in a
current situation. Supplies of PVC-S produced by Georgia Gulf to the Russian
market in 2010 exceeded 20 KT, the indicator grew to 10.5 KT in QI. It should be
obvious that other North American producers (Oxyvinyls, Westlake, Shin-tech,
Formosa) will be forced to redistribute their export lines and the lack of PVC
will cause the next leap in prices.
This week quotations for insignificant quotation stock volumes of North
American PVC for the Russian companies in April grew to record USD 1.330 –
1.370/mt, CFR Saint-Petersburg.
mrcplast.com
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