MOSCOW (MRC) - The emergency shutdown of emulsion polyvinyl chloride (EPVC) production at Khimprom Volgograd resulted in a shortage in the Russian market. Local companies had to buy expensive European resin, according to ICIS-MRC Price Report.
Khimprom (Volgograd) has been for quite a long time on the verge of shutting down because of economic inefficiency, but continued to produce products, including emulsion PVC. However, in late November, the company had to stop production of the emulsion, and according to unofficial sources, forever.
The second Russian producer of emulsion PVC RusVinyl, has not begun commercial EPVC production yet. As a consequence, the supply of cheaper Russian EPVC disappeared in the beginning of December, only imported material left in the market, but supply is tight.
Many suppliers of imported EPVC announced their price offers in foreing currency. Price offers for European EPVC were heard in the spot market in the range of EUR1,300-1,550/tonne FCA, including VAT.
November deals for EPVC were done in the range of Rb71,000-75,000/tonne FCA, including VAT. December deals for small volumes of Asian resin were agreed on average at Rb80,000/tonne FCA, including VAT.
Many consumers were not ready for such situation, especially small productions. Companies had to temporarily suspend their purchases of feedstock.
MRC