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Import PVC to Russia still goes down

May 25/2012

MOSCOW (MRC) --  Russian companies continue to reduce the volumes of purchases of suspension PVC in external markets. Following two weeks of May, the imports of resin fell to 12,500 tonnes. The weakening of the rouble against the dollar makes the imported material is even more unprofitable, as per MRC analysts.

In April, Russian companies reduced their imports of suspension PVC to 33,000 tonnes. May also shows a negative trend. Over the two weeks of this month, the imports of resin to the Russian market amounted to 12,500 tonnes. This is a very low figure, as last year the imports to Russia in May made about 56,600 tonnes of PVC.

This month, the imports from the U.S. and China fell almost by three-fold. The deliveries of resin from Russia reduced also significantly. The decline in imports of PVC to Russia over the last two months resulted from several factors. Firstly, Russian producers, in particular, Caustic (Sterlitamak) increased their supplies. The company this year increased the production of PVC by one and a half.

The second important factor was an excess supply and a moderate rise in prices of PVC in external markets. Last year, on the back of dynamic growth in prices, the tsunami in Japan, Russian companies formed the additional supplies of PVC very actively in the beginning of the year, anticipating the shortages and significant growth in demand for finished goods in the domestic market.

Excess supply of PVC in external markets, particularly in the U.S., and low demand in all the world in May led to a decline in prices. As per market participants, North American PVC for June was below than USD1,000/tonne, CFR St. Petersburg.

However, the May weakening of the rouble against the dollar completely offset the current decline in prices of PVC in external markets, and as a consequence, Russian companies do not hurry to contract PVC. Some companies even refused to buy resin in the external markets.

Tags:PVC, SPVC, Sterlitamak JSC (KAUSTIK).
Category:General News
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