October PVC outlook calls for further softening in Türkiye

Türkiye’s PVC market defied the rising upstream chain during September as tepid demand at home and weaker sentiment in Asia weighed on suppliers. Players have already voiced their projections regarding next month, saying that prices are prone to see additional discounts.



European producers step back to boost exports

Despite the reduced run rates in the region and supportive ethylene costs, European PVC producers were forced to trim their initial price targets as September wore on. PVC K67 offers at or above the $950/ton CIF Türkiye threshold met stiff resistance from consumers, who have been grappling with slow derivative markets at home.

Consequently, sellers trimmed their offers to the low-$900s/ton CIF, considering the fact that Europe’s construction industry has also been subdued following the summer holidays, putting a strain on producers.

Lackluster appetite also caused adjustments for Egyptian cargos, for which delivery delays have been prominent for some time. Competitive prices as low as $850/ton CIF emerged this week albeit for November shipments.

Easing supply drags US K67 down to low-$800s/ton CIF

Ebbing demand from the key Indian market coupled with comfortable Chinese supply mitigated the impact of multi-month high crude oil futures on downstream PVC in Asia. A Taiwanese major producer issued $30-40/ton decreases to the region for October cargos earlier this week, while the news that buying interest has been thin caused jitters among players in Türkiye.

As a spillover impact from the weaker scene across Asia, American PVC K67 offers have been posting gradual discounts since earlier this month. This week, prices were reported with further drops at $820/ton CIF Türkiye. “We also heard $810/ton in a few cases, but these offers seemed for short sales,” a manufacturer mentioned.

Unpromising demand, ample prompt supply weigh on October scene

Players expect prices to see some more declines into the new month so long as PVC demand stays discouraging across the board. Nonetheless, Türkiye’s lack of a healthy premium over many other outlets, as well as higher ethylene costs that squeeze producers’ margins, may keep possible decreases in check.