Türkiye PVC market faces continued pressure in July, outlook for August gloomy

PVC prices in Türkiye remained under downward pressure into the second half of July, as sentiment was dampened by persistently weak derivative demand and ample resin availability. Early expectations for August were shaped by these very factors, while players also pointed to potentially sluggish activity during Europe’s summer holiday season and a lack of support from Asian markets.

Demand from converters continued to underperform amid ongoing financial challenges in the domestic market. Many manufacturers limited their resin purchases, relying on existing stocks or incoming cargoes previously secured at lower prices. Thin end-product orders and slow sales in the construction sector further contributed to the muted appetite, keeping both import and local PVC prices on a soft footing.

Import K67 prices under pressure from global oversupply

CIF-based prices for dutiable PVC K67 have dropped by $15/ton on a weekly average, while the overall range was largely shaped by softer offers from the US. ChemOrbis Price Wizard showed that the market moved back to May levels as American prices broke below the $700/ton CIF mark this month, reflecting global supply pressure and subdued resin demand.

In the duty-free segment, offers on the low end broke slightly below the $800/ton CIF threshold, owing to South Korean and Egyptian origins. Meanwhile, European prices near or slightly above the $800/ton threshold failed to spark much interest, as Turkish buyers cited more competitive cargoes from other origins.

A trader offering European PVC said, “We could sell a few containers to small buyers while the broader market did not agree to pay these levels above $800/ton CIF, counting on their cheaper materials on the way from Far East Asia.”

Local market unfazed by Petkim’s tight stocks

In the domestic market, PVC K67 hovered around its lowest levels since October 2023, according to ChemOrbis data. Despite reports of limited K67 supply from Petkim, the local producer, the impact on the market was negligible due to sufficient locally-held stocks and restrained buyer demand. Even long-term supply concerns linked to Dow’s planned VCM unit closure in Germany, which may lead to reduced supply from Petkim, failed to shift the mood for now.

August outlook seems unpromising

With no immediate signs of recovery in derivative demand, sentiment heading into August remains gloomy. Comfortable supply conditions and muted buying interest suggest that any bullish attempts will likely face resistance. Traders also pointed to the European holiday lull and persistent weakness in Asian PVC markets as key factors keeping prices under pressure.

Although some analysts anticipate a broader recovery in late 2025—possibly triggered by interest rate cuts and easing inflation in Türkiye—short-term dynamics remain unfavorable. Buyers are in no rush to secure additional volumes, and even existing offers struggle to attract interest.

Still, traders remarked that deeply unfavorable netbacks may prevent sellers from issuing sizable discounts, potentially keeping price drops measured in the near term.

Looking at global indications, ample supply from Chinese PVC makers continued to weigh on the Asian market, compounding the impact of the monsoon season that hindered demand in India and parts of Southeast Asia. In Europe, supply remained comfortable despite lower run rates and delayed import deliveries, while subdued demand and steady June ethylene contracts curbed sellers’ attempts to improve their margins.