European Producers Polyvinyl Chloride - Arhive

European Producers Polyvinyl Chloride

European producers intend to at least roll over December PVC prices for January

European Producers Polyvinyl Chloride

Negotiations over January shipments of suspension polyvinyl chloride (SPVC) began in the Russian market on Wednesday. Most producers announced a roll-over of December prices for  next month, according to ICIS-MRC Price report.

Traditionally, many converters announced a decrease in PVC purchasing in January partially because of long holidays in the first half of the month. The current appreciation of the rouble against the dollar also made imported material more affordable for Russian consumers. European Producers Polyvinyl Chloride

However, Russian producers do not intend to reduce next month”s PVC prices, and a producer does not rule out a price increase of Rb1,000/tonne.

The Russian rouble strengthened perceptibly against the dollar and the euro in the second half of December. And this factor made imported PVC attractive for purchases. Some converters considered the possibility of meeting some of their needs in January due to imports. But these cases were rare, and there has been no talking about bulk purchasing so far. European Producers Polyvinyl Chloride

December was a rather successful month for Russian producers regarding PVC sales in the domestic market. European Producers Polyvinyl Chloride

All deals for December deliveries were done in the first half of the month, and some converters reported slight restrictions on shipments of resin. Thus, most producers are entering the year of 2020 with optimal warehouse inventories, and producers do not experience any pressure amid weaker January demand for PVC from the domestic market. European Producers Polyvinyl Chloride

Mass shutdowns for scheduled maintenance works at most converters” production capacities began this week. Some consumers will have them until the second decade of January, a small part of converters still intends to remain idle until the third decade of January. Outages for turnarounds at converters” production capacities will affect the volume of PVC purchasing.

Overall, deals for January shipments of Russian resin with K=64/67 PVC were negotiated in the range of Rb71,000-74,000/tonne CPT Moscow, including VAT, for quantities of less than 500 tonnes. Resin with K=70 was offered by Rb1,000-2,000/tonnes more expensive. European Producers Polyvinyl Chloride

Author: Margaret Volkova