Market and product

Imports of suspension polyvinyl chloride (SPVC) into Russia more than doubled year on year in the first two months of 2016, reaching 2,300 tonnes, according to MRC’s DataScope report.

This remains a small volume, however, despite the sharp increase in product coming into the country from the first two months of last year.

Weak demand and the devaluation of the rouble were the main reasons for such low import rates.

February imports of SPVC fell to 300 tonnes against 2,000 tonnes in January on seasonal factors and the rouble devaluation.

A significant decline in demand in the first two months and an excess supply of Russian resin have become the main reasons for such significant drops in PVC imports.

The volume of imports were also affected by the devaluation of the rouble, which has made purchases in foreign markets unprofitable.

Key external PVC suppliers in January-February of this year were producers from the US.

The total volume of imports of North American resin exceeded 1,100 tonnes. The second largest supplies were producers from China, the total imports of acetylene PVC during the period amounted to less than 1,100 tonnes.

PVC imports in to Russia are expected to increase significantly in March – April, mainly because of the long forced shutdown of the second largest producer SayanskKhimPlast.

As reported earlier, in mid-February due to equipment failure Angarsk ZP - the only supplier of ethylene for SayanskKhimPlast - shut production of ethylene, thereby SayanskKhimPlast had to shut its capacities also.

At the same time, weak demand for finished products and a high level of indicative prices (the value at which the tax is charged) cap the volumes of PVC imports into the country.

Some market participants said the indicative price for PVC is $850/tonne, while prices in China will start from $620/tonne DAP (delivered at place) Dostyk and above.