MOSCOW (MRC) -- Negotiations on Russian contract polyvinyl chloride (PVC) prices for December continued this week. Weaker demand and limited working capital at the converters made Russian producers cut PVC prices further, according to ICIS-MRC Price Report.

 

Negotiations on December contract prices for Russian PVC began last week. The discussions continued this week, many converters reported that the producers decreased contract PVC prices on average by Rb1,000/tonne, compared with the November level. 

 

At the same time, a lot of companies said they were  in no hurry to negotiate prices for December PVC delivery.

Contract prices of Russian PVC for December delivery were heard in the range of Rb48,000-50,000/tonne CPT Moscow, including VAT.

 

Some companies said that they managed to achieve prices below Rb48,000/tonne on 100% prepayment. Some producers said they had to reduce the contract price, despite a significant difference with imported material.

But it is quite likely that December will the last month for such a low prices of Russian PVC.

 

Demand for resin was quite strong for the current season and the current rouble devaluation offers great export prospects for producers. Two producers said that they concluded a few export contracts for December. Local converters reported that they understood that the low level of prices of Russian PVC will not last long.

 

Nevertheless, many of them planned to reduce PVC purchases in December, citing the decline in demand for finished PVC products and intended to shut their capacities for turnaround from 20s December to February.