PVC supplies predictably rise in price from many manufacturers

The ICIS-MRC materials note the entrepreneurs' plans to raise prices for PVC supplies. The increase is planned for February this year. Despite this, some entrepreneurs involved in the production of PVC, still did not support the rise in prices. The cost of PVC in the fourth quarter of 2020, the cost in the world has reached historic highs in the last decade. The scarcity triggered record price increases. If we consider the market in Russia, then here local producers intend to raise the price for February supplies by 2000-3000 rubles. for one ton. WINDOWS MEDIA notes that the cost of PVC at the end of 2020 increased by 8,000 rubles. in relation to November 2020, reaching 96,000 rubles. for one ton. Local producers cut their PVC supply services to the external market in the second half of last year. At the moment, export growth is also not expected. The import of polyvinyl chloride decreased by an average of 20% to 40.8 thousand tons. It was only renewed in January 2021.

As the producers have limited supply of suspension, the situation regarding the increase in prices for February supplies is likely to remain unchanged. Manufacturers plan to increase prices by at least 2,000 rubles. due to the depreciation of the ruble against the US dollar. In the case of a scenario in which an increase in the price of a suspension still takes place, processors will be forced to increase the cost of the finished product, at a time when the final product is not in high demand. In China, PVC production managers decided to lower prices for export supplies of acetylene polyvinyl chloride, due to the fall in prices for it in the domestic market. But even in this case, it is impossible to declare the start of deliveries from China, since complex logistics will not allow it.

According to the latest analytical data, the import of polyvinyl chloride to Russia decreased by 67% (statistics for January). And the export of PVC decreased by 16% Citation MarketReport, Moscow: "According to the results summed up last month, the import of suspension polyvinyl chloride (abbreviated PVC-C) to the Russian Federation was at the level of 0.55 thousand tons. This figure is down by 67% compared to the last month of 2020. And the tonnage volume of exports of pvc resin suspension, did not exceed 16%." Reports the Datascope division of the MarketReport company. Import of suspension polyvinyl chloride from other countries to Russia decreased to 0.55 tons.tons compared to 1.6 tons in January 2020 and 0.6 tons in December 2020. The increased price of resin in the foreign markets, as well as the long winter holidays, led to serious pressure on the import orders of resin by Russian firms. Comparing the imports of 2020 - 40.8 t. tons against 2019-50.9 t. tons, the difference was 10.1 t. tons. And judging by

Update from 03/05/2021 ------------------------------------- Industrial raw materials: PVC-S and PVC-E have risen in price three times (price for the CIS countries) Moscow (MarketReport portal): The first week of March marked new negotiations on the cost of European PVC. Deliveries and saturation of the market of Azerbaijan, Kazakhstan and other CIS countries were discussed. According to the second source, ICIS-MRC - the export price of European producers is growing inexorably, and at the end of February amounted to EUR100 / ton. In the regions, a serious deficit remains, which is due to abrupt unplanned shutdowns of a couple of factories in Europe. Plus, stoppages in the production of the product were recorded in America. The overall situation gave the effect of a jump in export prices of PVC to EUR80-100 / per 1000 kg. The main demand is for the resin grade K = 58/70. At the same time, supplies of PVC for export are becoming scarcer every week. There are fewer offers, but more demand! Some manufacturers have almost completely stopped export supplies and work only for the domestic market. In general, the deals for March supplies of PVC-S to the CIS countries were negotiated in the range of EUR 1,085 - 1,145 per 1,000 kg. For comparison, in February the price varied at the level of EUR 985-1 045 per 1000 kg of FCA. Block PVC-M grows in cost a little more slowly compared to suspension, but this aspect does not help Russian producers of the final product at the moment. We are following further developments, how the market will behave in April and May 2021. Related news: - Ethylene chloride and caustic - new production in Brazil - The price of polymers in Turkey is growing