Russian PVC market became stable

According to Market Report Company’s data, contracts on supply of Russian PVC resin in December have already been made. Prices have been generally fixed within the range of RUB31.500–32.500/mt (USD1.125–1.160/mt), including VAT, СРТ Moscow; the remaining volumes are offered with extra discounts of up to RUB2.000/mt (USD70/mt).

Russian producers have slightly pushed up PVC-S sales volumes; however, they will not be able to enter the next year without any stocks. We estimate resin stocks of Russian producers at the level of about 30 kt, as on January 1.

Importers have also adjusted their offers taking into account prices for Russian resin; however, the decrease in price was not felt due to high purchasing prices in November. Asian resin (acetylene- and ethylene-based PVC-S) is offered on average at RUB34.000-36.000/mt (USD1.215-1.285/mt), including VAT, DDP Moscow; there are reports on lower prices. Prices for Asian and American resin for January remain unchanged.

PVC imports went down to 28 kt (both unmixed PVC and compounds) in November, which was by 31% less compared to October. Imports dropped by all PVC grades; particularly, that referred to soft compounds. In November, resin imports moved at 15.5 k; about 6 kt were resin volumes contracted still in October.