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Disappointing demand puts a cap on firming for European PVC in Turkey

by ChemOrbis Editorial Team -
  • 22/09/2016 (08:42)
In Turkey, disappointing post-holiday PVC demand has put a cap on firmer price targets for European PVC this week. Many sellers, who expressed their future hike intentions in the week before the Eid Holiday, failed to issue higher import offers due to calm activity which allowed for only minor price gains for these cargoes.

Overall, the European PVC k67 offers edged up $5-10/ton to $865-880/ton CFR Turkey, cash, no duty amidst a deal at the low end. “Most offers centered at $870-880/ton while any price above that level would not work at all,” players concurred. Traders had voiced sell ideas as high as $890-900/ton CFR, cash before the holiday.

A trader admitted, “Demand is yet to revive as large buyers already sourced their needs at $840-850/ton before the holiday. Despite our previous targets, we were not able to lift our offers so far given depressed buying appetite.”

Another seller deemed sell ideas at $890/ton CFR as unreasonable pointing to the previous replenishment levels of traders at $830-840/ton before the holiday. “We may see price corrections in October as we do not expect any supply constraints from Europe. Plus, demand in Turkey is problematic due to ongoing collection issues and buyers are still cautious due to political conflicts.”
A buyer reported, “The market remains quiet amidst the lingering holiday lull while we see no improvement in our end business. We received prices at the same pre-holiday levels this week and we are expecting a mostly steady trend in October.”

A profile manufacturer said, “We now wonder if European PVC offers will remain firm or not in the days to come. We think that the market will be more or less active until winter begins.” A pipe maker commented, “Prices are slightly firmer compared to the pre-holiday levels. However, we doubt there will be sustainable firming for the coming weeks as the high season is ending soon.”

Although Asian and US PVC markets are firm for the time being, October expectations in Turkey are weighed down by rollover expectations in Europe, where demand is not supportive for sellers to lift the market up and spot ethylene costs are softer compared to early September. Spot ethylene costs on FD NWE basis indicated a €25/ton fall with respect to early September.
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