Slack demand drags import PVC prices to 5-year lows in Türkiye

PVC sustained its softening trend as August began, with sluggish demand in Türkiye and global weakness continuing to keep it a buyers’ market. More sellers were compelled to grant discounts this week, as initial announcements—showing rollovers or minor drops of $5-10/ton—failed to spark buying interest from consumers. “The recent interest rate cut has had little impact on trading activity, with cash constraints and muted downstream demand still weighing on PVC,” players commented.

Seasonal lulls in Europe and growing supply pressure on American producers also added to the downward pull.

European sellers succumb to multiple pressures

According to weekly average data from ChemOrbis Price Wizard, import K67 prices both for duty-free and dutiable origins have reached their lowest levels since June 2020.

Although razor-thin margins limited the scale of reductions, European sellers still applied $20-30/ton decreases to export offers this week. Sluggish activity within the bloc, slightly lower August ethylene contracts, and persistently weak buying appetite in Türkiye kept the pressure on.

Duty-free K67 was assessed $10/ton lower from last week, as confirmations of a fresh low at $770/ton CIF Türkiye visibly dampened sentiment. Sellers at the high end admitted, “We have not been able to conclude deals, given more competitive prices from some European suppliers. The regional summer break has weighed heavily on export offers from the region, with supply surpassing demand and capping sellers’ targets as they prioritize margins.”

US PVC under strain from rising stocks

Dutiable K67 offers were assessed unchanged at $670-700/ton CIF Türkiye, cash, with the high-end representing Chinese offers. However, sentiment for US-origin PVC remained under pressure, with some lower buy ideas at $650/ton CIF.

A player said, “A large US PVC producer has been facing rising stocks, as we heard. This may bring additional discounts in the coming term.” US producers have yet to benefit from the hurricane season, as no major production disruptions have occurred so far. The mounting stock pressure, coupled with subdued global PVC activity, has continued to put a strain on sellers.

Türkiye reflects global weakness

Market players see little near-term relief, citing Türkiye’s ongoing financial challenges, muted consumption in Europe during the holiday season, India’s monsoon-related demand slowdown, and a recent weakening Chinese market. Sentiment in Asia weakened this week amid a downturn in China, where earlier optimism—fueled by expectations of a new industrial work plan to cut capacity— relatively faded. Stagnant demand in India added to the pressure, with attention now on upcoming September price announcements from a Taiwanese major. “The company has not yet sold out its August quotas,” players confirmed.

Still, some players express cautious optimism for September in Türkiye. “We are more hopeful about next month amid the return of Europe and India, which may aid global PVC markets that have been grappling with tariff uncertainties, low consumption, and high Chinese volumes for some time,” a trader noted.