MOSCOW (MRC) -- In February PVC prices expectedly grew for separate market players. In March, taking into account the present situation, Russian converters may face the resin price as 49.000 - 50.000 RUB/t, according to MRC analysts.
In early January international trade companies lowered export prices for remaining volumes of December quotes of the North American PVC. This brought hope for even lower prices for suspension from USA to be shipped in February. But the prices for February release, on the contrary, returned to December level, at that all exports quotes were sold out actually within two weeks. The prices for March releases will be called only late February. Only some Russian companies could contract PVC for February dispatch.
Russian companies tried to compensate impossibility to contract suspension in North America by bulk PVC purchases in China. January level of prices for the Chinese acetylene PVC remained on the level of USD 1.020 - 1.040/t, DAF Dostyk. But taking into account growing cost of cargo railway transportation in Russian and Kazakhstan from January 1, 2011, the price for acetylene PVC from Russian consumer will make about 48.000 - 48.500 RUB/t, VAT included, СРТ Moscow. Now China celebrates Lunar NewYear but it is highly expected that after holidays Chinese producers will rise export prices for resin against continuing growth of oil prices.
Low demand in January didn't allow European producers to rise PVC prices. And only in February suspension producers from Europe could reach the growth of export prices by EUR 40-50/t to the level of EUR 820 - 850/t, FCA. At the same time contract price for ethylene in Europe over last two months grew by EUR 130/t, which involved growth of resin to the level of EUR 65/t. It stands to mention that many producers limited sales volumes in February expecting further price hike in March. Strengthening of euro rate against dollar and ruble as well as growth of exports quotes made European suspension pretty expensive for Russian companies: about 48.500 - 50.000 RUB/t, VAT included, СРТ Moscow.
Sayanskhimplast expectedly raised the contract price for PVC February release by 2.000 RUB/t, having levelled contract prices for the Russian suspension from three biggest producers to 47.000 - 48.000 RUB/t, VAT included, СРТ Moscow. Purchasing activity in the spot market is not that high, American PVC is offered on average for 46.000 - 46.500 RUB/t, VAT included, СРТ Moscow. It is not excluded that taking into account the price for the Chinese resin and logistics, soon we can expect correction of North American PVC prices.
Continuous oil price rises as well as current level of prices for PVC in the external markets make it possible to suppose that in March suspension prices in the Russian market may reach the level of 49.000 - 50.000 RUB/t, VAT included, СРТ Moscow.
More detailed information on PVC price forecast is presented in "Price forecast for PVC in Russia".