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EU PVC exports to Turkey slump but jump notably to India

by Esra Ersöz - eersoz@chemorbis.com
  • 25/10/2019 (12:32)
Statistics suggest a considerable decline in PVC exports from the EU to Turkey in tandem with the slower construction business, the growth engine for PVC consumption. Despite this slump in exports to Turkey, PVC exports to India rose remarkably in January-August, almost catching the full exports of previous year.

Lower exports of EU in lockstep with slower economy in Turkey

Turkey is the main export outlet for European countries, statistics affirm, given its nearby location and large consumption capacity. ChemOrbis Import Statistics reveal that Turkey imported PVC from the EU 15 in January-August by almost 19% less than the same period of last year.

This visible decline in PVC exports of the EU to Turkey was not surprising since Turkey’s economy contracted by 2.6% in Q1 and 1.5% in Q2 year-over-year. These negative outcomes naturally found reflection on the construction business, seriously dampening demand for PVC consumption as overall PVC imports of Turkey also faced a 16% decline in the same timeframe.

Even though the International Monetary Fund (IMF) and Fitch Ratings have revised up Turkey’s full-year GDP growth forecast for 2019, the Turkish economy is expected to end the year 2019 with almost zero growth.

France remains intact from slumping exports to Turkey

France has been the largest PVC supplier of Turkey since 2015 after the US lost its competitive edge as a result of increased financial requirements. Particularly after the implementation of the increased antidumping duties on US PVC, imports for this origin fell considerably in 2018. Filling the conspicuous absence of the US, France managed to keep lion’s share in January-August on a yearly basis and remained intact from the overall slump in PVC consumption.

Exports from Spain, Belgium, UK to Turkey undergo large declines

Nevertheless, other European suppliers including Spain, Belgium, the UK and the Netherlands suffered from the slower economy and exported less than last year. Although their individual shares are not as big as France, the total of their slumping sales contributed to the decrease in overall exports of the EU 15.

In January-August, exports from Spain and Belgium fell by 20% on a yearly basis while the UK faced the most severe fall. After being the 4th largest PVC supplier in 2018 in Turkey and closely following Spain, their sales to Turkey lost almost 85% so far in 2019 year-over-year.

Europe shifts attention to India in 2018, 2019

Statistics display a notable jump of 65% in PVC exports of EU15 to India in 2018 when compared to 2017. When it comes to this year, a visible growth remains in place since exports rose 21% in January-August when compared to the same period of last year.

What is more, the cumulative exports of the first 8 months of this year are about the catch the volume of exports recorded in the full year of 2018.

Indian players: European PVC flooded at competitive prices

Throughout September and early October, players in India reported European PVC offers at competitive prices with longer delivery dates. European cargoes along with the US contributed to the supply pressure inside India ahead of Diwali.

India: World’s largest import PVC buyer

The import PVC consumption of India ranks as the top in the world. Accordingly, some European countries appear to have been looking for alternative destinations for their export business here upon losing market share in the nearby Turkish market.

The UK, Spain and Sweden have expanded their export sales to India significantly so far this year, statistics show.
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