US PVC looks for direction in Mediterranean markets
On one hand, traders claim that their US suppliers are firm on their offers due to their limited allocations and the firming trend in Asia. On the other hand, buyers are not tempted to buy this origin as they are already covered amid their subdued end demand. Plus, spot ethylene in the US continues to exert pressure on US PVC, they argue.
According to ChemOrbis Price Wizard, spot ethylene prices on a FD USG basis are currently standing at one and a half year low a weekly average.
Hitting a bottom in mid-May after a decline of more than two months, US PVC offers to Turkey and Egypt slowly edged higher. However, their trend seems to have turned stable to slightly softer recently due to thin buying appetite. Players are now wondering whether US PVC will maintain its firming stance in the midst of these opposing factors.
Some players in Turkey and Egypt expect US PVC producers to take a stable to firm stance with support from the firming trend in China and a Taiwanese major’s $20/ton increase to Asia. Plus, supplies are limited, traders say. “Our US producer has already increased its export prices by $30/ton,” commented a trader in Turkey. “Softening signals for the US PVC appears to have disappeared due to stronger China,” added another seller.
Others, nevertheless, argue that any firming attempt might not turn real considering the slump in US ethylene and unsatisfactory demand. A distributor in Turkey expressed hesitation about his sell ideas, saying, “We aim for $900/ton and above, but we don’t know if we can achieve it.”
A distributor in Cairo affirmed the lack of interest in fresh purchases given poor end demand. A pipe converter in Egypt also said, “Offers are almost steady for this week; however, traders are open for negotiations with buyers who place firm bids.”
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