Türkiye PVC market struggles to find post-holiday momentum

Players returned from the Eid al-Adha break on Tuesday, but the long-awaited rebound in demand remained elusive. Indeed, most PVC sellers maintained their firm stance on the back of higher container prices and firmer prices in the key Indian market. Nonetheless, converters appeared in no rush to make fresh purchases amid sufficient resin and end-product availability. Sellers who had attempted to push through hikes ahead of the holiday found little traction amid tepid buying interest, especially for the mainstream K67 grade.

Comfortable supply limits price gains for K67    

Supply remained broadly comfortable, with FCA cargos readily available for US origin at stable prices from pre-Eid. A player commented, “Even after the holiday, sellers were still offering prompt availability, signaling no immediate tightness. This ensured that Turkish buyers, many of whom were already covered with materials in transit, felt little urgency to secure additional volumes.” This is to say, the market saw rollovers or slight upward movement in new shipment offers, but bonded warehouse stocks continued to act as a ceiling for further gains.

Notional import price ranges for duty-free and dutiable K67 posted modest increases of $10-20/ton on the low end from pre-Eid week, buoyed in part by firmer overseas stances, such as Egypt’s approach in other export markets, gains in India, and rising ex-USG offers. A trader said, “We have no Egyptian offers for July yet while our supplier has been able to sell to South America with better netbacks.”

Meanwhile, Chinese prices hovered close to previous low ends, weighed down by softer ex-China PVC prices despite earlier firmness. Market participants cited supply overhangs and caution over the BIS decision as key reasons for the cap on additional gains for this origin. In the meantime, South Korean K67 remained firm at $800/ton CIF underpinned by bullish freight rates but lacked appetite following previous deals as low as $750/ton.

Market receives modest support from specialty grades    

The domestic PVC K67 market remained unchanged despite higher prices from the local producer, Petkim. Sufficient locally held stocks and quiet derivative demand kept the market responding to firmer import attempts. In contrast, notional levels for K70 and K58 inched higher by $10/ton at the low ends due to slightly better demand than K67.

“The broader market lacks firm support. Still, the relative strength of K70 and K58 has been in place since the week leading up to the holiday and continued to lend sellers some bargaining power,” multiple sellers said this week.

Players assess global signals amid regulatory uncertainty    

Looking ahead, sellers are pinning hopes on a stronger return of buying interest once business activity normalizes fully as June wears on, pointing to the support from surging freight rates to PVC. However, tight cash flows and the absence of supply concerns continue to limit immediate purchasing appetite for now. Any further hike attempts in Türkiye will hinge on whether demand begins to catch up.

Meanwhile, the global PVC scene appears rather mixed nowadays. On one side, increasing oil prices and freight rates, coupled with slightly better sentiment in India despite the rainy season, are backing firmer pricing attempts. On the other side, weaker Chinese export offers, mounting Chinese flow into Southeast Asia, and ambiguity around the July announcements from a key Taiwanese supplier drive a cautious outlook ahead of the imminent BIS outcome from India on PVC imports. Additionally, sluggish activity and ample supply continue to dominate the neighboring Europe, where PVC sellers aim to maintain margins by resisting discounts this month.