Negotiations over contract prices of Russian polyvinyl chloride (PVC) for September deliveries began last week.  Russian producers have limited stocks of SPVC because of scheduled outages for maintenance (SayanskKhimplast - in August, Bashkir Soda Company - in September, Kaustik (Volgograd) - in October), At the same time, PVC imports fell substantially, particularly, from the United States. It was this factor that allowed Russian producers to maintain August prices for September, despite a decline in entry barriers for imports.

 

Contracts for September shipments of Russian SPVC were concluded in the range of Rb53,000-56,000/tonne, CPT Moscow, including VAT, which corresponds to the August price level.

 

Some market participants said they intend to partially meet September demand for PVC by purchasing material in Europe and the United States. Prices of imported material are already almost equal prices of Russian PVC because of the reduced import duty to 6.5%, and in some cases, they are even lower. However, such cases are not widespread.

 

As reported earlier, according to the decision of the Eurasian Economic Commission of 23 June 2014, the import duty on unmixed with other substances (HS code 3904 10 009 9) SPVC is 6.5% from the 1 September 2014.