European PVC offers move below $700/ton CIF in Turkey
by Merve Madakbaşı - mmadakbasi@chemorbis.com
Import PVC offers witnessed a new round of hefty falls this week. European PVC K67 prices broke below $700/ton CIF Turkey, cash amid lower domestic demand and the rapid decline in global markets amid India’s absence.
Prices declined by nearly 25% just in a month
This week, the range for European PVC K67 decreased by $50-80/ton from a week earlier to be assessed at $650-680/ton CIF Turkey, cash.
As can be seen from ChemOrbis Product Snapshot below, the low end of K67 prices for European cargoes saw a cumulative decrease of $200/ton (24%) just in a month.
*Right click the image and open in a new tab to view the full-sized snapshot.
Europe struggles to sell to Turkey despite lower production rates
Players reported that a major West European producer initially revealed its offers at $730/ton for PVC K67 and $750/ton for K70, which failed to work. A few traders also stated that offers at $700/ton level were found unworkable as they heard buying ideas as low as $600/ton.
India’s absence drag all global PVC markets down
World’s largest PVC importer, India extended the nationwide lockdown until May 3 as a part of its efforts to contain COVID-19 pandemic. Given the immense pressure on all global PVC markets, a Taiwanese major unveiled $160/ton monthly decreases for May to China while skipping offers to India, which is a rare move.
Plus, US PVC K67 offers saw further weekly declines of $40-50/ton and stood at around $610-640 CIF both in Turkey and nearby Egypt.
In the meantime, South Korean PVC K67 prices saw fresh decreases and looked for buyers at $670/ton CIF Turkey, no duty. Demand towards these long distance cargoes remained cautious. Furthermore, Russian offers that are subject to 6.5% customs were heard at aggressive levels. Russian PVC K67 prices sank to as low as $620-640/ton in the last few days after being mentioned above $700/ton last week.
Prices declined by nearly 25% just in a month
This week, the range for European PVC K67 decreased by $50-80/ton from a week earlier to be assessed at $650-680/ton CIF Turkey, cash.
According to ChemOrbis data, duty-free European K67 offers are now standing at $665/ton on a weekly average, the lowest level not seen since December 2008. The market saw prices as low as $560/ton during the global crisis 12 years ago.
As can be seen from ChemOrbis Product Snapshot below, the low end of K67 prices for European cargoes saw a cumulative decrease of $200/ton (24%) just in a month.
*Right click the image and open in a new tab to view the full-sized snapshot.
Europe struggles to sell to Turkey despite lower production rates
Players reported that a major West European producer initially revealed its offers at $730/ton for PVC K67 and $750/ton for K70, which failed to work. A few traders also stated that offers at $700/ton level were found unworkable as they heard buying ideas as low as $600/ton.
India’s absence drag all global PVC markets down
World’s largest PVC importer, India extended the nationwide lockdown until May 3 as a part of its efforts to contain COVID-19 pandemic. Given the immense pressure on all global PVC markets, a Taiwanese major unveiled $160/ton monthly decreases for May to China while skipping offers to India, which is a rare move.
Plus, US PVC K67 offers saw further weekly declines of $40-50/ton and stood at around $610-640 CIF both in Turkey and nearby Egypt.
In the meantime, South Korean PVC K67 prices saw fresh decreases and looked for buyers at $670/ton CIF Turkey, no duty. Demand towards these long distance cargoes remained cautious. Furthermore, Russian offers that are subject to 6.5% customs were heard at aggressive levels. Russian PVC K67 prices sank to as low as $620-640/ton in the last few days after being mentioned above $700/ton last week.
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