American PVC drops below $700/ton threshold in Turkey, Egypt
In Turkey, this is the first time that this threshold has been broken since mid-April 2009, according historical data from ChemOrbis. A buyer reported concluding a deal for American PVC at $710/ton, 360 days deferred payment this week, which corresponds to $690/ton when adjusted to cash terms, CFR, subject to 6.5% duty and 18.81% antidumping duty. This deal formed the low end of the overall range for American PVC k67 offers, which was reported at $690-730/ton CFR Turkey, subject to 6.5% duty and 18.81% antidumping duty.
In Egypt, American PVC offers were quoted at $700-750/ton on CIF, 180 days deferred payment basis, which comes to $680-728/ton on cash equivalent basis. The range is down by $10-30/ton on the week.
PVC players are currently trying to gauge the market outlook for December following a long period of weak market conditions. According to some players, American PVC offers will not post additional decreases in the upcoming period as spot ethylene prices have gained some ground in the US and some US producers are also planning to shut their plants for maintenance in the first quarter of next year.
However, others think that demand is not strong enough to support any increases as this time of the year is the low season for many PVC applications and companies are about to close their financial books for the year. Plus, cash constraints and limitations on letters of credit continue to weigh down on demand, they argue.
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