With North American producers down-adjusting their export PVC offers due to
persistent weak demand in global markets, lower offers from the region have
started to be seen in several regions including Mediterranean and
However, there is still limited buying interest as buyers are
reluctant to commit to cargoes from long distances amid generally bearish
In Turkey, PVC k67 offers out of the US are reported
USD20-30/ton lower this week, breaking below a new threshold. A trader said, "We
heard that there are some US PVC offers in the market at lower levels with a
deferred payment term provided for one year. So we have decided to withdraw our
offers." Players generally comment that traders offering US materials are
shying away from making large price cuts as they acknowledge that buying
interest remains subdued and lower prices fail to pull buyers back to the
market. However, some players argue, "Sellers are ready to give discounts in
order to conclude deals."
In Egypt, where US materials are generally in a
dominating position for imports, lower offers have also shown up from the
region. This week’s range for US PVC suggests an approximate decrease of
USD10/ton at the high end and a larger decrease of USD30/ton at the low end. As
it is the case in the Turkish market, a buyer said, "Sellers of US materials do
not want to sell below a certain threshold and therefore, they are planning to
withdraw their offers."
Nevertheless, Egyptian buyers continue to expect
further softening in import prices pointing to the bearish sentiment across the
globe as well as lower feedstock costs.