Negotiations on prices of European polyvinyl chloride (PVC) to be shipped in November to the CIS markets began This week. European producers were forced to reduce PVC prices, following a major cut in ethylene prices, according to ICIS-MRC Price report.

 

The November ethylene contract price in Europe was agreed by EUR90/tonne lower from October. Such a reduction in the price of one of feedstocks leads to a decrease of EUR45/tonne in PVC production costs. However, European producers said they would not reduce their export PVC prices proportionally.

 

Negotiations on November shipments of suspension PVC (SPVC) to the CIS countries began this week. Deals have been negotiated in the range of EUR730-780/tonne FCA, down by an average of EUR20-30/tonne from September.

 

Despite reductions in export PVC prices in Europe, many market participants reported lower purchasing on the back of seasonal factors.