Moscow (MRC) - Russian producers of suspension polyvinyl chloride (SPVC) announced an increase in contract prices for January delivery of Rb2,000/tonne. The rise in prices resulted from several factors, according to ICIS-MRC Price Report. 

 

Negotiations on January shipments of Russian PVC to the domestic market began this week. Most local producers announced an increase in contract prices on average by Rb2,000/tonne, compared with the December level. The rise in prices of the polymer resulted from the increase in the feedstock prices, as well as a significant rise in price of imported material.

 

Negotiations on January contract prices this week were done in the range of Rb50,000-52,000/tonne, including VAT and delivery, while the December contracts were in the range of Rb48,000-50,000/tonne, including VAT and delivery.

 

Some producers reported that they have practically contracted all their PVC volumes for January, and plan in February to go for further price increases. Most converters understand that, given the devaluation of the rouble in December they can not refrain from price rise for PVC.

 

At the same time, many companies will be shut for maintenance works during almost all January, and as a result, the volume of purchases will be limited. Situation in the foreign markets remained mixed.

 

Suppliers of North American PVC have cut prices for shipments in January to USD810-830/tonne CFR St Petersburg.

 

Producers of acetylene Chinese PVC have kept their export prices in the range of USD810-860/tonne DAP Dostyk.

 

Given the current dollar the price for imported PVC for Russian converters will be on average at Rb60,000/tonne, including VAT and delivery.