MOSCOW (MRC) – According to the ICIS-MRC pricing report, the price negotiations for April supplies of European polyvinyl chloride (PVC) to the CIS countries are due to a shortage of supply.
The deficit continued to weigh heavily on the export prices of European producers, which in some cases increased by € 100 per tonne from March levels.
The April contract price for ethylene increased by 40 euros per tonne compared to the previous month, which theoretically allows to increase the cost of PVC production by 20 euros per tonne.
However, in the past few months, shortages have been the determining factor in the market, and it is the shortage of polymer in the market that has led to a three-digit increase in export prices for PVC.
European producers announced an increase in export prices for the CIS countries in April by an average of 100 euros per tonne.
Seasonal factors are starting to play a growing role in PVC demand and many converters continue to gradually increase their capacity utilization.
Export quotas for European manufacturers are decreasing more and more every month. The unstable operation of the production facilities of some manufacturers and high demand have led to an acute shortage of PVC in Europe.
Resin with K = 58/70 was the most acute shortage of export quotas. Many market participants could not fully satisfy their needs from European manufacturers.
In general, the deals for the supply of suspension polyvinyl chloride (SPVC) in April to the CIS markets were discussed in the range of 1.185–1245 euros per ton of FCA, while the deals of the previous month were discussed in the range of 1,085–1145 euros per ton of FCA.
MRC, an ICIS partner, publishes news and polymer pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.