MOSCOW (MRC) -- Negotiations over February prices of Russian polyvinyl chloride (PVC) began in the late last week.
Producers last month took a firm stance on price increases, although some companies still managed to maintain January prices, according to ICIS-MRC Price report.
Negotiations over February contract prices of Russian suspension polyvinyl chloride (SPVC) began last Thursday, but real deals have been done only this week. Producers have firmly insisted on the price rise from the beginning of the year, and expectedly announced an increase of roubles (Rb) 500-3,000/tonne for February delivery. Converters do not have other choice, and had to accept the price rise.
Several converters managed to achieve a rollover for February from the January level. The reduction in domestic demand some producers offset by the growth in exports in the last two months. As a result, producers have small stocks, while converters' demand for PVC increased in February, and this trend will continue in March - April.
An actual absence of the alternative - competitive imports - also played an important role. Chinese producers began to offer resin shipment by rail way containers only in the second half of January (such shipments have reduced rates and significantly decrease PVC price for end-users), and the prices are still quite high (USD840/tonne DAP Moscow) compared with the prices of Russian producers.
Deals for January shipments of Russian K64 and 67 PVC were done in quite a wide range of Rb61,000-65,500/tonne, including VAT and delivery. The price range of Rb61,000-63,000/tonne was typical for deals from 1,000 tonnes.
Deals for February shipments were agreed in the 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.
January deals for resin with K 70 were done in the range of Rb64,500-66,500/tonne, including VAT and delivery; whereas February deals were negotiated in the range of Rb65,000 - 69,500/tonne, including VAT and delivery.
MRC