Russian PVC prices plummet in September

According to the ICIS-MRC price report, the Russian market has started negotiations for September shipments of suspended polyvinyl chloride (SPVC) and prices have fallen sharp.

Russian PVC prices reached record highs in July-August due to strong seasonal demand and planned simultaneous maintenance shutdowns at two major production capacity, Sayansk and Sterlitam.

High domestic material prices led to a doubling of imports, and the increase in imports before the end of the peak season was the main reason for the price cuts in Septemb.

The price is now down to Rs 4,000/t ($60/.

Since the beginning of this year, the price of PVC in the Russian market has been rising, and some buyers have begun to buy resin from the United States and China in April and May under the momentum of rising domestic material pric.

Strong summer demand and upcoming closures for renovations led to another increase in resin purchases in foreign markets in June-Ju.

Two major Russian PVC producers - SayanskKhimPlast and Bashkir

Soda, with a total annual production capacity of around 600,000 tonnes, shut down their capacity on July

But the increase in imports avoided a shortage of resins (except K=70 PVC) on the market during the domestic plant maintenance peri.

After the planned refurbishment, the start-up of the Russian plant was quicker and the market had already leveled off in Augu.

The demand for PVC in the Russian market was strong in August, and good demand is expected in Septemb.

But at the same time, some buyers are buying on monthly demand without adding to their inventory, partly in anticipation of further price cuts in the coming mont.

Transactions for Russian K64/67 resin in September were negotiated in the range of Rs 76,000-78,000/t CPT (freight to Moscow), including VAT on volumes up to 500.

Note: 1 USD = 674 rupees