Türkiye PVC market splits as suppliers take divergent pricing paths in early July

Players in the PVC market entered July with divergent pricing strategies, leading to a visibly two-tiered landscape. While some sellers pursued higher prices to offset margin pressure and low netbacks in Türkiye, others leaned toward discounts to stimulate sales amid plentiful supply. This divide was apparent in both the import and local markets, as players monitored varying cost structures, demand signals, and global dynamics.

European producers set to push for margin recovery

As the new month kicked off, the market revealed a widening pricing gap among suppliers. European producers maintained a firm pricing stance despite a stable ethylene settlement. Their determination was largely tied to the recent rise in €/USD parity, hovering near 1.18 at the time of writing, which has eroded their export margins and fueled attempts to raise offers in a bid to recover profitability.

In contrast, a major Taiwanese producer stepped back from initial hike targets in Asia late last week due to growing resistance. This shift in tone created room for more competitive pricing by US suppliers in Türkiye, who appeared more willing to adjust levels compared to late June.

Hike attempts from South Korea fail

While fresh announcements from nearby Europe were pending, some South Korean sellers initially tested higher levels to improve margins. However, they later conceded to discounts, trimming offers in response to lukewarm interest. Following some attempts at $830/ton CIF, prices were later adjusted down to $800–810/ton CIF for this origin. A player remarked, “Although strong spot ethylene prices lent partial support to these sellers, the fragile outlook across Asian PVC markets, coupled with easing freight rate hikes, curtailed their firm stance.”

For European K67, sellers floated higher sell ideas at $830-850/ton CIF month-on-month, although official offers were still lacking as of midweek. An agent of a Western European producer remarked that allocations were still unset and that skipping July shipments was a possibility on their side, citing poor margins and delayed previous deliveries.

In the meantime, some Mexican cargoes for July arrival were offered at a relatively competitive level of $810/ton CIF, while new offers for fresh shipments had yet to surface. This uncertainty kept market participants cautious, especially considering summer holidays that could curb demand within Europe and pressure regional suppliers to divert volumes to export markets, mainly Türkiye. As a result, some buyers did not rule out the possibility of rollovers on deals for European origins this month.

As a side note, players were watching for the next move from an Egyptian producer, as a state-owned PVC plant was resuming operations following a shutdown caused by gas supply issues during the Middle East conflict.

Weaker Asia weighs on US PVC offers

In the dutiable market, US prices from traders saw modest discounts from last week, as a Taiwanese major’s downward revision for July in Asia cast a pall on their earlier firm stance. “Most offers centered around $700/ton CIF this week, with any prices above that drawing limited interest from consumers,” multiple players noted. Meanwhile, Chinese K67 remained under pressure, with values sticking close to last month’s low end amid weak regional sentiment.

Local K67 market also reflects two-pronged pricing behavior

The local PVC K67 market witnessed a wide price range this week, reflecting the two-pronged pricing behavior seen in imports. Although average prices did not change much over the week, the gap between low and high ends widened, with some distributors’ willingness to liquidate stocks leading to a softening on the low end of the assessment.

Moreover, some Russian materials surfaced at lower price points, although these levels at $1000-1010/ton inc. VAT were not broadly confirmed. At the other end, prices near or even above $1100/ton were also voiced by a couple of sellers, as they justified their stance with tight supply or high replacement costs, particularly for European material.

Anyways, high-end prices reportedly failed to generate traction, as buyers largely resisted elevated levels. A profile manufacturer said, “This divide between aggressive pricing and defensive positioning characterized local dynamics this week, while leading to confusion among PVC buyers. The local producer, Petkim, lifted its offers for July due to its short stocks, while distributors were flexible on their pricing.”