Türkiye’s PVC market realigns under pressure from cheap S. Korean offers

Import PVC saw its bearish tone persist in early May, as demand remained sluggish and supply was mostly comfortable. The standout development this month came from some South Korean suppliers, who delivered a sharp blow to competitors by offering K67 at nearly $750/ton CIF at the low end of the duty-free market. Following suit, Egyptian PVC prices hit new lows, while players voiced curiosity over whether European suppliers would respond.

According to ChemOrbis Price Wizard, both dutiable and duty-free K67 markets hit their lowest weekly average levels in four years following this week’s price cuts.

South Korea’s aggression sets a new benchmark    

The entry of competitively priced South Korean K67 late last week has intensified competition, undercutting prices from other non-dutiable origins. In response, Egyptian PVC K67 cargoes were also confirmed below the $800/ton CIF Türkiye threshold, while players expressed curiosity about whether European suppliers would react, given their already thin margins.

“South Korea has created a new price reference point in the market. The price gap with European origins has widened significantly, leaving little room for those suppliers to maintain previous offer levels,” buyers opined. “Although some European producers attempted to hold their prices, citing the elevated €/USD exchange rate, lower ethylene contracts in the region have made their position more difficult.”

Eyes turn to European PVC sellers as pressure mounts    

European producers, while aiming to preserve price stability, found themselves squeezed by a combination of weak market interest and elevated €/USD parity, which dented their competitiveness. Offers in the $840–850/ton CIF range faced stiff resistance from Turkish consumers, mirroring limited pricing power in an increasingly competitive environment.

Prices for duty-free PVC K67 dipped by $15–40/ton week-over-week. The sharper drop on the low end came directly from competitive South Korean pricing, while more modest cuts from European sellers helped limit the high-end decline. Prices from certain European producers saw small discounts of $10-15/ton in a few cases.

An agent of a producer said, “Our supplier was not eager to sell much given margin concerns, while buyers were also unwilling to accept rollovers.” Meanwhile, PVC prices emerged with rollovers to small discounts within Europe, with sellers defying falling ethylene contracts in the region.

Dutiable market at lowest since mid-2020
   
The dutiable K67 market also continued to show signs of strain, with American offers touching a new low of $680/ton CIF on the low end of the market. A trader noted that some American producers were scaling back output to stabilize prices.

Still, the overall demand sentiment continued to be shaped by economic uncertainties, tight financing conditions, and a sluggish derivative market. Sellers admitted that efforts to hold ground were largely ineffective in the face of the growing availability of more affordable alternatives.

Cautious outlook for the weeks ahead
   
Market players are now watching for potential moves from European and US suppliers, especially considering continued price deterioration. Multi-year low price levels are now prompting questions about whether a price floor is approaching.

While some sellers believe current price levels could be nearing a floor, further reductions remain possible if suppliers prioritize sales volume over profitability, costs remain unsupportive, and pressure from South Korean offers persists. Buyers, for now, are largely holding back in anticipation of additional downward revisions or clearer signals on price stabilization.

Attention has also turned to India, where political and budget-related uncertainty could influence demand trends in South Asia. A trader commented, “With defense spending likely to take priority, we don’t expect full utilization of planned infrastructure budgets this fiscal year.” This cautious regional outlook adds another layer of complexity to the global PVC trade, especially if South Asian demand stays muted and contributes to higher availability in other markets. Meanwhile, early June price expectations called for rollovers to modest drops in Asia’s PVC markets at the time of writing.