PVC offers hit almost a year-to-date low in Türkiye

Import prices drifted further lower in May as persistently mediocre demand from Turkish consumers, coupled with subdued global markets, remained a drag on sellers. Adding to muted downstream markets following the Eid al-Fitr holiday and national festivities was a lack of supply woes amid smooth availability from European and US producers.



European K67 below $850 CIF for first time in 4 months

Constantly weak buying interest forced European PVC makers to concede to additional discounts after initial May prices came softer month over month. According to ChemOrbis data, K67 prices from the region broke below the $850/ton CIF Türkiye mark, while this origin last stood below this level in early January.

The duty-free K67 range was assessed $10/ton lower on the high end at $810-850/ton CIF Türkiye, cash week over week. While initial sell ideas at around $870/ton CIF failed to work for European K67, suppliers adjusted their prices down to $840-850/ton early this week. A few players reported hearing transactions as low as $800-820/ton while this was not confirmed by primary sources at the time of writing. Egyptian cargos remained on the low end of the market, with prices at $810-820/ton.

“Turkish buyers are not in need of urgent or nearby materials these days as they opt to consume their existing stocks following their temporary shutdowns during the Eid al-Fitr holiday,” admitted traders. Meanwhile, spot local PVC deals saw small gains within Europe as lethargic demand loomed over sellers’ margin improvement targets. The May outlook mostly stabilized based on projections about a stable demand scene in the region.

Players report no supply concerns

The dutiable PVC K67 range was assessed $10/ton softer from last week at $750-770/ton CIF, cash. Transactions were few and far between, with a large trader saying, “We evaluated firm bids from our customers for our US volumes, taking an overall lethargy in global demand into account.” Some participants also voiced their concerns about a potential rise in US volumes into Türkiye in the coming term, pointing to the projected AD measures by Europe on American and Egyptian origins.

Multiple players opined, “Abundant supply and muted derivative consumption were hot topics during Chinaplas 2024. As for Türkiye, financial challenges and a lack of satisfactory orders in the local end markets remain the main issues that weigh on PVC.”

What to expect for the weeks ahead?

The short-term outlook remains soft given the gloomy demand outlook in downstream segments, with the Labor Day holiday on Wednesday limiting activity more for the week. Yet, costs may keep the size of drops modest so long as ethylene and oil prices remain close to their prevailing levels. Indeed, a recent slump in global oil benchmarks caused some jitters among suppliers. Players will monitor the timing of the recovery in global consumption, with Chinese players’ leaving their desks for a long break and India being on the verge of May elections and the rainy season that typically kicks off in June.