SayanskKhimPlast, Russia"s largest suspension PVC (SPVC) producer, shut its capacities on almost monthly turnaround in the end of last week. Bashkir Soda Company and Kaustik Volgograd will shut their capacities for the turnaround in September - October. 

 

A high level of export prices in the USA led to a drop in import volumes several times. All of these factors allowed the Russian producers to achieve increase in August contract prices on average by Rb4,000/tonne. Contracts for August delivery of Russian PVC were done in the range of Rb53,000-56,000/tonne CPT Moscow, including VAT. Deals were mainly done for the supply of resin by Bashkir Soda Company and Kaustik Volgograd, while August contracts for SayanskKhimPlast resin were few because of scheduled maintenances. 

 

At the same time, some converters said they had managed to agree contracts for July-September last month at the level of July contract prices. Significant hike in contract prices did not lead to buying activity improvement last week. 

Local converters were in no hurry to buy PVC in the spot market.

 

Deals for August delivery of Chinese acetylene K65 PVC were mainly done in the range of Rb48,500-49,000/tonne CPT Moscow, including VAT. Supply of Chinese acetylene K70 PVC has been tight since the second half of July, with price offers in the spot market reach Rb52,000-52,500/tonne CPT Moscow, including VAT. 

 

Contract prices for Russian PVC for September will be affected by the reduced rate of import duty. As it was previously reported, Sochi Eurasian Economic Commission on 23, June adopted a decision to reduce the import duty for SPVC from current 10% to 6.5%, effective from 1, September.