US PVC offers soften in global markets
In China, import offers for US PVC k67-68 cargoes have declined by $30-50/ton so far this week due to slowing buying appetite in line with the beginning of off-season for PVC applications while buyers are also not willing to meet their needs from this origin given its long shipment time.
“Chinese players think that PVC prices have room to drop further in the upcoming period. Many players find it risky to secure US cargoes due to the long transportation time,” said a trader. Another trader also commented that PVC markets are on a softening trend in global markets and added that most buyers do not prefer to wait long for US cargoes as they are feeling uncertain about the market outlook.
In Turkey, import US k67 PVC offers were reported stable to $10/ton lower on the week as buyers have already secured their needs from this origin during the absence of European cargoes and they now refrain from making new purchases from this origin due to its unfavorable shipment time. In addition, most market players feel that some European cargoes might be exported to Turkey in the near term because prices are still carrying a premium above the European market.
“The downwards price corrections observed in China and Southeast Asia combined with the softer trend in Europe reveal that the global trend has withdrawn its support from the market. Plus, lower contract settlement in the US coupled with slower demand for export cargos could exert some pressure on American PVC,” players commented.
In India, the low end of the import PVC range was formed by US cargoes this week. Players still report that trading activities have significantly slowed after the government’s decision to withdraw the high-value banknotes from circulation.
“Cash constraints still hinder trading activities in the county. Demand has not shown a sign of improving and a lot of payments are delayed. Traders are currently conceding to give discounts to deplete their stocks. We expect decreases from a Taiwanese major in January,” said a trader.
A plastic end manufacturer operating in Mumbai also stated that even prices standing close to the low end of the import range do not attract buying interest.
In Europe, this week an offer for American k58 was reported in line with the levels in other global markets. However, the European buyers do not want to secure this material due to the stronger dollar as well as the existence of more competitive offers in the local market where prices are under pressure from slowing demand and lower monomer contracts.
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