Türkiye’s import PVC market turns up driven by surging freight rates

.jpg)
PVC snaps a 3-month bear run in May
Import K67 prices stabilized after hitting their lowest levels since the beginning of 2024 in the second half of May. The prompt market continued to see competitively priced materials due to the lingering liquidity issues. However, the news that container shipping costs from Asia turned up, driven by the escalating trade tension between China and the US, helped the import market snap a 3-month downtrend.
This week, European and US offers rebounded from 4-month lows. South Korean offers were few and far between, rising visibly in response to swiftly higher freight rates from the region.
Buying sentiment unfazed by spiking freights
Bolstering the sentiment on the sellers’ side were also June price hikes in the Asian PVC outlets. The uprun was pioneered by improved buying appetite in India prior to the monsoon rains and higher prices from a Taiwanese major to the region that came earlier in May.
In the meantime, initial price indications from Europe received a lukewarm response from converters. Having secured their previous cargos at around $800/ton CIF Türkiye, consumers seemed unwilling to accept fresh offers at around $850/ton right away.
“We started to test the market with about $30-50/ton increases for June. We expect PVC buyers to digest the latest offers, considering the bulls in Asia and sharply higher freight rates,” a regional supplier said. According to early projections, a Taiwanese major may issue another price hike for July so long as transportation costs remain high and container issues persist.
The dutiable PVC K67 range was assessed $60/ton higher on CIF Türkiye basis, as ex-USG offers reached as high as $800/ton, according to some players. A global trader commented, “Sellers may prefer to direct their US cargos to India if activity stays muted and netbacks remain unfavorable in Türkiye over the near term.”
According to the weekly average data, dutiable import K67 prices on CIF Türkiye basis have been trading at par with or even below import offers in China/Southeast Asia since April this year.
Main culprit: Muted domestic end markets
Some suppliers admitted seeing thin demand toward fresh offers, attributing this to the nearing Eid al-Adha holiday and slow pipe and profile industries inside. Buyers confirmed, “There are still competitive local PVC prices from distributors as low consumption following early May deals and liquidity issues loom over the market. Derivative demand remains in the doldrums given high interest rates.”
Eyes locked on post-holiday demand
Manufacturers have been running their factories at reduced rates of about 50-60% over the last few months, blaming a lack of healthy orders from domestic downstream segments. “We plan to suspend production during holidays for a few days as demand from export markets is not brisk either,” converters reported, while resin demand may pick up once companies return from the break.
A tug-of-war between buyers and suppliers seems highly likely in June, with the recently higher crude oil futures and firming Asia on one hand, and the impact of the materials on the way on the other hand.
“We think American PVC prices in Türkiye will likely post additional gains looking at current highs in Asia’s import market, while K67 should stand at the mid-$800s/ton. As for European origins, PVC producers have been grappling with poor margins and they will be willing to lift the market more if demand allows,” multiple players said. In the meantime, the imminent outcomes of AD probes by India and the EU will be leading to uncertainties about the future trade flows.
More free plastics news
Plastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...- March hints at further hikes in European PP, PE markets
- India’s PVC market dips to new lows on Taiwan’s March cuts, players seek signs of bottom
- Q1 turnarounds uplift Mid-East PP, PE markets in February; will it spill over to March?
- SE Asia’s indefinite PE shutdowns: A market in crisis as demand woes threaten survival
- Türkiye’s PPH markets perform better than copolymers in February
- Margin recovery priorities outweigh supply imbalances in European PVC markets
- Asian PVC demand stagnant; recovery hopes shift to end of Q1
- Tough slog in S Korea’s petchem industry spells disappointing 2024 financial results; will government's recent plan help weather the storm?
- China’s PP, PE markets face post-holiday supply surge and tepid demand
- A tug-of-war unfolds in Türkiye as PVC demand struggles against rising costs