Negotiations over contract prices of Russian polyvinyl chloride (PVC) started in the last week of September. Negotiations had been mostly completed by the beginning of this week. Many converters managed to reduce contract prices. Scheduled maintenance works at Kaustik (Volgograd) and Bashkir Soda Company did not allow  Russian producers to roll over September prices.

 

Contracts for October shipments of Russian SPVC were concluded in most cases in the range of Rb50,000-52,500/tonne CPT Moscow, including VAT. Supply of resin by Russian producers was sufficient. At the same time, some converters reduced their purchasing, citing expectations for weaker demand for finished products from PVC and the reluctance to enter the "off-season" period with expensive inventories of material and finished products.

 

As reported earlier, Kaustik (Volgograd) shut down its production for a scheduled turnaround from 3 to 25 October. The Volgograd plant"s annual capacity is 90,000 tonnes of PVC per year. Bashkir Soda Company (formerly Kaustik, Sterlitamak) shut down its PVC production from 5 to 20 October, the plant"s annual production capacity is 210,000 tonnes.