September contract prices of ethyene in Europe were agreed by EUR55/tonne lower from August, which led to a reduction of PVC production costs by EUR27,5/tonne. Thus, European producers had to reduce their export prices, including prices for the CIS countries. Price cuts reached EUR25/tonne.

 

Negotiations over September shipments of suspension polyvinyl chloride (SPVC) to the CIS markets began this week. Deals were negotiated in the range of EUR770-810/tonne FCA, down by an average of EUR20-25/tonne from August.

 

At the same time, according to some market participants, not all European PVC producers had reduced their prices. Some producers, particularly from Germany, virtually maintained their August export prices for September. However, this was due to the fact that their August prices was much lower than other producers" prices.

 

The current weakening of the euro gives an even greater effect on the reduction of PVC prices in Europe. At the same time, this factor does not work for all countries, particularly, not for Russia (a major weakening of the rouble against the main world currencies has begun since early September).