Turkey’s import PVC market gains premium over Europe
The firming sentiment in Turkey’s import market has been mainly driven by European suppliers’ decisions to considerably reduce their quotas to the country for more than two months while the upward wave in other global import markets like China and India during that period also supported the rally in prices.
Source: ChemOrbis Price Wizard
Turkish players noted that they could not see any reason behind the European PVC sellers’ reduced exports to Turkey at a time when import PVC prices were rising in the country, except to speculate that the sellers were probably finding better netbacks in India and China at the time. No major production outages were reported in the region that would affect the sellers’ supply levels.
However, a comment from a West European PVC producer to ChemOrbis this week, as well as, the softening spot ethylene costs in Europe caused some players to think that the upward momentum in Turkey’s import market may fade soon.
The West European producer pointed out that some cargoes might be exported to Turkey in December, where prices are carrying a premium above the European market, since this would allow European producers to maintain their current price levels in their local markets. The producer also added that December will be a short month and demand will slow down further due to the holidays.
Spot ethylene costs in the region, meanwhile, have been tracking a softening trend since late October to be currently reported at around €790/ton FD NWE.
In addition, the upward momentum in China and India has lost momentum recently. Chinese PVC players report that they expect to see some correction on prices in the near term as prices have already increased too much and January PVC futures on the Dalian Commodity Exchange have witnessed declines in the last two weeks. Market activities in the Indian PVC market have also come to a standstill recently after the government’s demonetization decision.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- China’s local PVC market retreats from 8-month high
- Initial June PE offers to SEA signal firming despite buyers’ resistance
- Firming in ethylene lags behind propylene in Europe
- PET rally stalls in China after prices hit four-and-half-year high
- Asian PS retains firming path on supportive upstream
- June PE outlook under discussion in Europe
- Taiwanese major lowers June PVC offers to Asia despite firm China
- Local PP markets cautiously firmer in Vietnam, Indonesia
- Global ethylene prices continue to defy energy rally
- China’s import polyolefin markets up on soaring crude, futures