Local PVC prices hit 5-month high on tightness in Turkey
by ChemOrbis Editorial Team - content@chemorbis.com
Prompt PVC supply has been tight in Turkey mainly due to diminishing availability from European suppliers in the last couple of months. Regional suppliers either allocated limited volumes to the country due to planned and unplanned outages or postponed their deliveries, while Petkim’s long turnaround also exacerbated the shortness.
“Consumption in Turkey declined in the wake of economic challenges that players faced in the second half of 2018. Domestic end product markets slowed down, leading PVC manufacturers to keep their stocks modest most of the time. Nonetheless, tight supplies along with delayed deliveries from Europe boosted demand for prompt or nearing cargos in the recent weeks and firmed up the sentiment for PVC,” commented players.
According to ChemOrbis Price Index, the distribution market has reached to its highest weekly average since early July and neared almost $1000/ton not inc VAT for PVC k67. This week, the overall k67 range centered on $1160-1200/ton ex-warehouse Turkey, cash inc VAT, with deals at $1160-1175/ton.
“We were unable to meet our urgent needs as the domestic producer does not have sufficient stocks following their maintenance and traders’ stocks also waned mostly. Firmer prices in the import market also led to higher prices for local materials,” lamented a profile converter.
Although some players find the recent rising trend artificial, the short-term PVC outlook remains strong so long as availability concerns persist.
“Consumption in Turkey declined in the wake of economic challenges that players faced in the second half of 2018. Domestic end product markets slowed down, leading PVC manufacturers to keep their stocks modest most of the time. Nonetheless, tight supplies along with delayed deliveries from Europe boosted demand for prompt or nearing cargos in the recent weeks and firmed up the sentiment for PVC,” commented players.
According to ChemOrbis Price Index, the distribution market has reached to its highest weekly average since early July and neared almost $1000/ton not inc VAT for PVC k67. This week, the overall k67 range centered on $1160-1200/ton ex-warehouse Turkey, cash inc VAT, with deals at $1160-1175/ton.
“We were unable to meet our urgent needs as the domestic producer does not have sufficient stocks following their maintenance and traders’ stocks also waned mostly. Firmer prices in the import market also led to higher prices for local materials,” lamented a profile converter.
Although some players find the recent rising trend artificial, the short-term PVC outlook remains strong so long as availability concerns persist.
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