Negotiations over March Russian polyvinyl chloride (PVC) began last week with producers continuing to gradually increase prices in the domestic market, although some companies still managed to maintain February levels, according to the ICIS-MRC Price Report.
Negotiations over March contract prices of Russian suspension polyvinyl chloride (SPVC) began last Wednesday, but specific deals were done only in the early this week.
Producers have firmly insisted on the price rise from the beginning of the year, and expectedly announced an increase of roubles (Rb) 500-2,000/tonne ($9-34/tonne) for March delivery.
Converters still do not have available imports, as key producers from China have also actively increased export PVC prices since the beginning of the year.
Several converters managed to roll over prices from February, but these deals had been agreed together with February deliveries.
Despite a significant strengthening of the rouble against the dollar, the Russian companies have continued to export big volumes since November.
It was large exports which helped producers to optimise stock inventories in spite of low demand for PVC from the domestic market. An almost complete absence of imports also significantly helped to balance domestic market.
Although some companies have resumed PVC purchasing in China since January, volumes were insignificant and did not affect the market. Besides, Chinese producers also have been increasing prices in line with global trend.
Some converters have reported that the Chinese PVC was almost equal in price of March Russian PVC. However, significant volumes of imports are not likely to arrive in the nearest future. Demand for finished PVC products is low, and few people are building additional stocks.
Deals for February shipments of Russian PVC were done in quite a wide range of Rb63,000-66,000/tonne, including VAT and delivery.
The price range of Rb63,000-64,000/tonne was typical for deals from 1,000 tonnes. Deals for March delivery were agreed in the range of Rb64,000-68,000/tonne CPT (carriage paid to) Moscow, including VAT for deals up to 1,000 tonnes.
A more significant increase in prices was seen in the segment of resin with K70. Deals for March shipments have been agreed in the range of Rb65,500-69,000/tonne, including VAT and delivery.
($1 = Rb58.33)