MOSCOW (MRC) -- Negotiations over prices of European polyvinyl chloride (PVC) for January shipments to the CIS markets continued this week. European producers were forced to reduce their PVC prices proportionally to the fall in ethylene prices on the back of weak demand, according to ICIS-MRC Price report.

 

The contract price of ethylene in Europe for January shipments was agreed by EUR130/tonne lower from December. The price cut of one of feedstocks results in a EUR65/tonne reduction in PVC production costs. Some market participants said they had managed to achieve a EUR70/tonne reduction in export prices of European producers.

 

Negotiations over January shipments of suspension PVC (SPVC) to the CIS markets continued this week. Deals have been negotiated in the range EUR620-660/tonne FCA.

 

The record weakening of the euro against the dollar over the last nine years only enhances the effect of the January fall in European producers" export prices.