Higher ethylene contract pushes European PVC up in Turkey
Overall European PVC k67 prices are standing at $900-910/ton CIF Turkey, cash no duty. Although a trader claimed to be hearing $890/ton at the start of the week, this was not widely confirmed by other market players. “Several producers are aiming to get above $900/ton for k67 and any price below this seems out of the question,” both buyers and sellers concurred.
Similarly, PVC k70 and k58 supplies from Europe are considered tight with prices reaching up to $950/ton CIF Turkey, cash no duty recently.
A converter commented, “Lack of supplies from Europe drove price levels higher while some buyers are ready to pay the recent levels given their need for material. The market may remain firm until January unless supply issues ease.” A trader also said, “Several European PVC producers have limited amounts to offer to Turkey with one West European producer experiencing a VCM shortage these days.”
Although spot ethylene costs in Europe saw losses starting from late last week in line with weaker energy costs and improved monomer supplies, supply constraints are likely to keep Turkey’s PVC market firm over the short term.
A pipe manufacturer commented, “We expect to hear done deals at $900/ton for k67 at a minimum. However, for the coming weeks, limited exports on the part of Turkish converters combined with persisting collection problems may depress activity and keep the firming in check considering the recently lower spot upstream costs.”
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