European PVC Producers Reduce Prices for CIS Countries

Weak demand has prompted European polyvinyl chloride (PVC) producers to decrease their export prices to CIS countries, according to ICIS-MRC Price report.

The December contract price of ethylene was agreed up by €32/tonne from November, which presupposes a €16/tonne increase in PVC production costs.

However, weaker demand from export markets forced European producers to reduce their export prices, despite the trends in the feedstocks markets.

Some European producers announced a price decrease of €15-20/tonne from the second half of November.

In the second half of November, some manufacturers already reduced their export prices, which have fallen to €740-800/tonne FCA (free carrier) by the end of the month, whereas deals were done in the range of €765-820/tonne FCA at the beginning of the month.

Negotiations over December shipments of suspension PVC (SPVC) to the CIS markets were held in the range of €720-785/tonne FCA.

Some market participants were slow to conclude deals, expecting further price cuts, as it was in November.