US PVC trades at a larger discount to Europe in Turkey
In addition to the general weakness in the market stemming from political uncertainty as well as the upcoming Ramadan and summer holidays, the softening trend in US cargoes has also hampered buying interest for European cargoes despite additional decreases for these origins.
American PVC k67 offers were reported in the range of $840-870/ton CFR Turkey, subject to 6.5% customs and $45/ton anti-dumping duty, cash so far this week, down $20/ton on the high end and stable on the low end from a week earlier. European offers, meanwhile, are currently standing at $960-1000/ton CFR, cash, which indicates a $25/ton softening on the low end from previous week’s levels.
“Even after adding the customs and antidumping duties, which re-exporters usually do not pay, the cost of US cargoes falls below the lowest European offer reported. We still feel there is room for further decreases to around the $800/ton level for US PVC by the end of June,” argued a trader.
Another trader said, “It is a matter of buying either Asian or American cargoes for buyers these days. Asian cargoes are offered at quite attractive prices and they are only subject to 6.5% duty unlike US material, which has an additional $45/ton antidumping duty.” This week, Asian offers were reported at $840-865/ton CFR, the cost of which comes to around $895-920/ton after adding duties. This means that Asian offers stand $50-75/ton below the European range.
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