US PVC offers firm up in Turkey, Egypt

Players in Turkey and Egypt have reported firmer PVC offers recently from the US recently. In Egypt, US PVC offers gained some ground last week after tracking a downward trend since mid-March in line with weak domestic dynamics as well as globally weak PVC markets. Players cited reduced supplies from the US amid improving local demand in the country as the main reason behind sellers’ firmer stance.

In the last two week, US PVC offers to Egypt have been reported stable to $30/ton higher at $880-920/ton on a CIF Egypt, 180 days basis. The range comes to $870-910/ton when adjusted to cash terms.

“Improving demand in the US local market has resulted in price increases for export offers from the country recently. However, players are not willing to accept the recently higher levels while they are meeting their immediate needs from the locally held cargoes,” commented a trader in Egypt.

Another trader confirmed that allocations are limited from the US and therefore, suppliers stand firm on these levels. He also added that the recent increases in crude oil prices are also supporting the firming trend in US offers.

Similarly, in Turkey, US offers firmed up this week as sellers have adopted a slightly firmer attitude on their prices given limited allocations from US producers. In addition to improved demand inside the US, players claimed that there is reportedly a production issue at one of the feedstock suppliers of US PVC producers, which is also limiting the allocations from the country.

A pipe manufacturer said, “Supply levels for US cargoes are not comfortable in Turkey and we experienced a delivery delay for some material that had been shipped in March.”

In Turkey, the US PVC k67 range was reported at $870-880/ton CIF Turkey, subject to 6.5% customs duty and 18.81% ADD, cash, up $10-20/ton from a week earlier. PVC k58 was traded at $875/ton with the same terms.