Market Dynamics
Chinese PVC prices rose on the Russian market on rouble weakening
Time: 2014-09-23 Source from: www.mrcplast.com
Depreciation of the Russian rouble in September against the dollar led to a rise in prices of Chinese acetylene polyvinyl chloride (PVC) in the local market. Spot prices for Chinese resin became close to the prices from Russian producers, according to ICIS-MRC Price Report.
Exchange rate of the Russian rouble against the dollar in mid week fell below 38Rb=1USD, while in the end of August it was 37Rb=1USD. As a result, suppliers of Chinese acetylene PVC announced a proportional rise in prices, and the difference in the price of some PVC products of the Chinese and Russian PVC has been reduced to an insignificant value.
This week spot prices for acetylene K65 PVC in the central part of Russia started at Rb50,500/tonne FCA, including VAT. PVC prices in the south regions started from Rb51,500/tonne FCA, including VAT; PVC prices in Siberia started at Rb48,500/tonne FCA, including VAT.
Supply of Chinese PVC was tight in the spot market because of significant delays in shipments from the plants.
Some Russian companies reported that local producers had not fully completed their their obligations on the August contracts.
The delays in shipments and rouble devaluation make purchases of Chinese PVC in September (with October delivery) very risky.