LATEST NEWS: US PVC breaks below $700 CFR in Mediterranean markets

Buyers in the Mediterranean markets have reported receiving largely lower American PVC offers this week. PVC K67 prices have broken below the $700 CFR, cash threshold on the low ends in both Turkey and Egypt. The markets were dragged down by weak demand from key end markets coupled with bearish Asian and European markets.

Import US offers on CIF Turkey/Egypt basis are now standing at their lowest levels since February/April 2016, the weekly average data from ChemOrbis Index reveal.



In Turkey, the overall American PVC K67 range is currently assessed at $665-740/ton CFR Turkey, subject to 6.5% customs and 43.81% AD duty, cash. The level represented $85-135/ton decreases from last week with the larger decline appearing on the low end.

A manufacturer complained about poor demand from the construction sector as well as suspended activity in major export markets and voiced his buy ideas much lower than the prevailing market levels.

“Expectations for a 3-digit decrease from a Taiwanese major for May across the region combined with a lack of demand from India, which has been under a lockdown due to COVID-19 pandemic since March 25 weighed PVC. Moreover, aggressive South Korean offers exerted an extra pressure on suppliers,” opined Turkish players.

A similar case has been valid in neighboring Egypt, where US PVC K67 prices are standing at $680-750/ton on CIF Alexandria basis. The range was down $160/ton on the low end while it sank by $110/ton on the high end with respect to last week.

Additionally, US PVC prices showed up as low as at $650/ton CIF India and $710/ton CIF Vietnam this week in line with virus-hit activity across Southeast Asia. Import PVC prices in the region have hovered at a 4-year low recently, data from ChemOrbis suggested.