MOSCOW (MRC) - Prices for Russian and imported polycarbonate (PC) increased in the Russian market, as per ICIS-MRC Price Report. 

 

Imported PC has been steadily growing on the back of rouble devaluation. To a large extent this referred to Asian PC, as the dollar rates got stronger against the other currency. Foreign producers to not lose even more customers in Russia, have not raises their PC export prices. Nevertheless, buying interest to imported material has sharply weakened in all segments of the Russian PC market, except for the extrusion sector. 

 

Domestic price for bottle PC granules was Rb180,000/tonne CPT Moscow, including VAT on average exchange rate of 54Rb=1USD. At the same time, PC prices in the Asian market in November and December softened on the back of price drop of Bisphenol A and a surplus of the polymer itself. 

 

Deals for injection moulding PC granules have been done in the range of USD2,450-2,700/tonne CIF Hong Kong, excluding VAT. Extrusion PC prices were in the range of USD2,400-2,450/tonne CIF Taiwan, excluding VAT.

Domestic prices for imported PC for sheet extrusion were heard in the range of Rb145,000-150,000/tonne CPT Moscow, including VAT.

 

At the same time, the European market for a long time remained steady with prices kept at EUR2,200-2,300/tonne FD NWE, excluding VAT with  the average exchange rate of 67Rb=1EUR. 

 

December prices for Russian PC for sheet extrusion were heard in the range of Rb132,000-135,000/tonne CPT Moscow, including VAT, up Rb10/kg from the level in November.

 

The only Russian PC producer, Kazanorgsintez, explained the price rise by the higher production costs and weak margins. Some market players said they consider such a rise in prices amid low season as speculative and unreasonable. If this trend will continue, prices for Russian PC can reach and even exceed prices for imported PC in the high season  - April - May. However, this can happen only if the rouble stabilises, which is unlikely.

 

At the moment, the PC market is characterised by the pent-up demand, as consumers expected prices to decrease in line with the strengthening of the national currency, improving macroeconomic situation in general. The next couple of months, the purchasing activity in the PC market is expected to be weak also because of the New Year holidays.

Along with these factors, many market participants reported a lack of available working capital and avoid investing in stocks that can become unprofitable if exchange rate suddenly changes.