European PVC offers to Turkey shrug off higher costs
The depreciation of the Turkish Lira against the USD and political turmoil hampered activity further as opposed to the previous expectations for a pick-up following the local elections in late March.
May PVC offers defied rising ethylene in Europe
In the first half of April, European PVC prices in Turkey were mostly stable amid limited supplies and tepid demand. However, prices on high ends of the market disappeared as April wore on.
For May, a couple of European PVC makers revealed their offers with slight discounts of $10-20/ton from April before monthly ethylene contracts settled up €30/ton ($34/ton). The emergence of PVC k67 deals below the $900/ton CIF threshold surprised players despite the higher outcome of ethylene monomer settlement.
Improved sentiment in Asia and US curbed softening
Meanwhile, PVC players believe that prices may not lose further ground in the coming term. “American PVC has already reached bottom while supply constraints in China and improved demand in India boosted the sentiment in Asia. Thereby, we don’t expect dramatic changes for European PVC,” argued traders.
Exports offset poor domestic end business
“Optimism about a demand pick-up right after March elections has faded as domestic end demand has continued to be slow. Nonetheless, our exports are not bad, fortunately,” opined a large scaled profile maker.
Traders commented, “European PVC sellers do not seem to have made a bright start to the period after Easter Holidays in their local market. They were more eager to sell their cargoes to Turkey until buying interest recovers in their region along with better weather. Plus, the upcoming maintenance shutdowns at some PVC plants in Europe would keep the market mostly flat.”
June is set for rerun of elections, eyes on economy
The Turkish Lira sank to a 7-month low against the USD as the new month kicked off mainly due to the rerun of local elections in Istanbul . This is naturally reflected on demand , while the PVC market may be prompted by the global markets.
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