Turkish players take a cautious approach as PVC firms up after two months

PVC prices turned north in November following steady drops in the previous two months. A cautious upturn in Asian outlets and reduced availability for US and European shipments underpinned sellers’ firmer stance. In the meantime, players remained skeptical about the sustainability of the recent firming in Türkiye due to the foggy demand outlook in derivative segments.

Traders report limited allocations

The sentiment remained firm on the sellers’ side this week as low margins caused European PVC makers to reduce their export volumes for November. Similarly, US prices gained further ground as the previous purchases in late Q3 helped suppliers ease their stock pressure to some extent and adopt a firmer stance.

A major producer, namely Kem One , remained out of the market for another week, as buyers confirmed. According to a letter sent to customers, the company will further slash its chlorine and caustic soda production in France as of November 10 amid low profitability and weak demand. A player argued, “We believe that demand concerns for the medium term cause PVC producers to keep their operations reduced, let alone their poor margins amid current costs.”



Import PVC K67 edges up by $15-25/ton

According to the weekly average from ChemOrbis Price Index, duty-free K67 prices have gained $15/ton since the month started, while dutiable prices have increased by a total of $25/ton.

The duty-free K67 range was assessed at $810-840/ton CIF Türkiye, cash. Not only European offers but also Egyptian and South Korean prices were few and far between.

Dutiable PVC K67 prices were assessed at $770-800/ton CIF, subject to applicable duties. The range included US, Chinese and Russian origins, while demand for these cargos is said to be calm nowadays.

Buyers took a cautious approach, saying, “American sellers continued to lift their prices after achieving good sales last month. Nonetheless, we do not rule out the possibility of discounts on deals in December unless buying interest really revives.”

Petkim’s consecutive hikes lift local sentiment

Following suit, the local market firmed up amid a spillover impact from the improving sentiment for imports. The domestic producer, Petkim, issued increases in the spot market based on global developments and slightly better interest for prompt cargos. A source from the company confirmed, “Our customers asked for the previous lows, but a limited number of duty-free import PVC offers forced them to accept our latest offers in most cases.”

Accordingly, the locally-held K67 market was up at 1020-1070/ton ex-warehouse Türkiye, including VAT this week. K58 and K70 notionally reached $1030-1090/ton and $1060-1120/ton, respectively.

Players set to gather at industrial events in Istanbul

PVC players are set to meet at the 24th Eurasia Window, 15th Eurasia Door and 13th Eurasia Glass fairs, which will be simultaneously held between November 11-14 in Istanbul. “The market has firmed up owing to sellers’ willingness to stop decreases. We expect prices to find their direction during the industrial events with the lingering woes about downstream demand across the board on one hand and sellers’ efforts to recoup their margin losses on the other hand,” a converter opined.

What do other PVC markets say?

Now that Türkiye’s PVC market has been facing a tug of war between sellers and buyers, players are on hold to hear the imminent December notifications from a Taiwanese major in Asia. The announcement seems to be postponed until the end of the Diwali holiday in India on November 12.

Most players expect a slight increase from the producer, but there are few predictions of a rollover. If the Taiwanese major announces higher prices, an upturn will be likely to prevail across the region. However, players should bear in mind that the size of potential upsides might be capped by foggy downstream demand and lower upstream costs.

Elsewhere, the lower ethylene contracts for November, coupled with subdued demand, exerted pressure on the PVC sentiment in Europe. Moreover, supply levels seemed comfortable despite some restrictions. Yet, sellers’ margin concerns will likely keep the possible softening in check.