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Turkey’s import PVC market above $1400 CFR for first time in 12 years

by Merve Madakbaşı -
  • 04/12/2020 (10:59)
PVC extended its longest rising streak ever to the final month of 2020 in Turkey. An ongoing bullish trend across the global markets, still tight availability from Europe and the US as well as supportive upstream chain kept the market strong for the 7th month in a row.

Delta between duty-free and dutiable K67 narrows to $22/ton

According to ChemOrbis Price Index, duty-free K67 has hit above $1400/ton for the first time since August 2008 as the weekly average has reached $1412/ton CFR Turkey. Meanwhile, the dutiable and duty-free K67 are now trading almost on par when compared to a $70/ton gap back in October.

This week, the non-dutiable import K67 range rose $40-45/ton to be assessed at $1400-1425/ton CIF Turkey, cash. Not many producers revealed their new prices at the time of writing, while buyers affirmed that supply has yet to show a visible relief towards the end of the year.

Export volumes from the US stayed limited

Dutiable K67 was assessed up $40-50/ton week over week at $1380-1400/ton CIF, subject to 6.5% customs duty, cash. Offers of up to $1425/ton emerged for American K67 with no transactions at this level being confirmed at the time of publication.

A profile maker commented, “Sellers are making good money as they feel free from stock pressure. One of them said demand from South America was vivid while they are able to sell at $1440/ton to Africa.”

Locally-held K67 market soared $270 in 3 months

In the local market, the domestic producer Petkim applied $50/ton hikes on its list PVC offers on Tuesday. Following suit, the local PVC K67 climbed another $50/ton on the week to be assessed at $1730-1750/ton ex-warehouse Turkey, inc VAT. The range has narrowed when compared to late November due to a lack of offers from suppliers.

According to the wekly average data, the local K67 market has posted a cumulative increase of $270/ton (18%) since early October.

PVC converters are exhausted by hefty increases in resin prices

At the same time, PVC buyers were fatigued by massive increases throughout the second half of the year as they struggled to reflect surging raw material costs onto their end product prices. “This was mainly triggered by reduced supplies from nearby European suppliers. Turkey is more expensive from elsewhere,” said one of them.

The Turkish market has been facing supply restrictions since Q3 in the midst of a global tightness and a pent-up demand from the construction sector. During January-October, Turkey’s cumulative imports of S-PVC stood at 548,000 tons, indicating the highest figure in 3 years, according to ChemOrbis Statistics data.
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