Plunging ethylene drags US PVC offers lower in Mediterranean markets
According to data from ChemOrbis Price Index, Turkey’s and Egypt’s import PVC k67 markets were down by $20-30/ton on a weekly average compared to early March. The data also suggested that the gap between the two markets narrowed to around $20/ton this week.
In late January, the delta had grown to be the widest since March 2011 amidst sharp increases in Egypt’s import PVC market as was previously mentioned in detail in ChemOrbis Plastics News Gap between Turkey’s and Egypt’s import PVC markets widest in 7 years .
In Turkey, the overall k67 range for US PVC indicated $20-30/ton decreases from last week as traders undercut their offers for prompt materials at bonded-warehouses to ease their sales pressure.
“Although initial prices for new shipment cargos emerged with hikes at the beginning of March, firmer attempts from US suppliers failed due to persistently slow demand in Turkey. Moreover, drastic falls in spot ethylene prices in the US exerted extra pressure on sellers,” a buyer highlighted.
Likewise, American PVC prices lost $20/ton on the high end in the Egyptian market. An agent offering on behalf of a US producer noted, “PVC buyers are holding their purchases as they are expecting further reductions.” Another trader agreed, “Although we adjusted our offers down this week, demand remains thin. Overall supplies are meeting demand.”
A pipe manufacturer in the country reported that end users are limiting their purchases nowadays which resulted in moderate end product demand.
Players in Italy also reported €45/ton lower PVC k70 prices compared to the previous week. “Import offers are not attracting strong interest from buyers,” participants noted.
In upstream, spot ethylene prices on FD USG basis sank to their lowest levels in 26 months, according to the weekly average data from ChemOrbis Price Wizard. They indicated a cumulative decrease of $230/ton when compared the beginning of 2018.
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