ICIS-MRC price report shows that Russian market began to negotiate March’s suspension polyvinyl chloride (SPVC) shipment last week, with manufacturers announcing further price increases on the domestic market.
In 2019, the price of PVC in Russia has doubled and is expected to continue to rise in March this year. Reduced inventories and a lack of imported goods are the main factors contributing to further price increases.
Russian manufacturers announced that the March delivery price would be increased by 1,000 to 2,000 roubles/ton depending on the resin.
| Thiourea dioxide |
The current situation is similar to last year’s trend. Prices of PVC in Russia were rising every month before September last year, and processors were forced to pass on costs to consumers.
Capacity utilization is quite high, exceeding 90%, but excess resin is actively exported. However, it is noteworthy that export sales have begun to decline gradually since February.
Since last year, only one manufacturer in northern China, the main supplier in the past, has exported a limited amount of acetylene-based PVC to Russia, partially offsetting the cost of Russian shipments, and the delivery quota in March has been exhausted.
Even considering that Russian producers plan to raise prices in March, importing acetylene-based PVC from China is not profitable.
Compared with February, some processors do not intend to increase their purchases, while others are seeking to increase their purchases, although demand for products remains weak.
Overall, the Moscow trading price of K64/67 resin CPT remained at 74,000-76,500 roubles/ton in March, of which VAT increased by 1,000-1,500 roubles/ton compared with February, up to 500 tons. For special grades such as K58/70, some manufacturers intend to raise prices by 1500 – 2000 roubles per ton.
| Thiourea |