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Türkiye’s import PVC market moves sideways as hike attempts fail in March

by Merve Madakbaşı - mmadakbasi@chemorbis.com
  • 08/03/2024 (10:23)
PVC sellers previously approached the market with higher sell ideas for March in Türkiye. A supportive upstream chain and modest availability for certain origins lent support to suppliers, let alone the impact of the lingering logistic mishaps worldwide. Nevertheless, the market has ended up with a mostly stable trend for imports following a tug-of-war between buyers and sellers.

Faltering demand support weighs on price hike goals

Prices have been on a cautiously firming trend since January amid soaring costs and a blurry demand outlook amid the low season for several applications. Muted demand inside Europe, coupled with mixed signals from Asian outlets, has rubbed off on Türkiye’s PVC market moving into March. Sellers’ aims to lift US K67 offers to $850/ton and duty-free market to $950/ton, both on a CIF Türkiye basis, failed to materialize.

Ex-warehouse Türkiye – CIF– PVC K67

Lower bids cause suppliers to step back

Suppliers trimmed their initial hike requests to generate buying interest from consumers, most of whom already have some material on the way and plan to shut their factories during the Eid al-Fitr holiday next month.

The dutiable PVC K67 range was assessed unchanged at $800-840/ton CIF Türkiye, subject to applicable duties this week. Traders said they do not expect US K67 prices to break below the $800/ton CIF threshold despite lower bids. Indeed, Indian players confirmed that American suppliers were not that active in the region this week, which counterbalanced a supply overhang in China to some extent, along with still high ethylene costs in Asia. Meanwhile, the scene has slightly improved in the region thanks to the projected turnarounds from Chinese PVC producers to balance supply excess at home.

The duty-free K67 range was also assessed flat from last week at $890-920/ton CIF. Some buyers were said to be able to obtain prices slightly below the low end of the range on their deals for larger purchases regarding South Korean and European origins. Nonetheless, this was not widely confirmed by primary sources at the time of writing. Meanwhile, spot Egyptian PVC cargos were rare, keeping the number of offers limited for this origin.

Still, costs keep PVC prices close to February highs

On the other side of the coin, strong ethylene costs continued to underpin downstream PVC for another month and kept any discounts on deals in check. On top of slightly higher ethylene contracts in Europe, spot ethylene prices in Asia maintained their rally owing to tightness and healthy demand.

A manufacturer confirmed, “We pushed for rollovers before shaking hands with our suppliers. Yet, we had to pay small price hikes for non-dutiable origins as compared to our last deals in February. Suppliers trimmed their initial prices only to a certain extent given the cost pressures.”

Thin demand keeps local PVC on softer side

As for locals, meanwhile, distributors maintained their softer pricing policy despite some earlier efforts to stabilize the market amid firm expectations for import prices at the time. K67 was assessed $10/ton below last week at 1100-1150/ton ex-warehouse, including VAT while the total drop has reached $40/ton from a month ago. This was because activity was stagnant ahead of the Eid al-Fitr holiday in April. Moreover, sellers have been under strain of cash constraints prior to the elections, as some players put it.
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