A trader informed SSESSMENTS.COM that low-priced polyvinyl chloride (PVC) cargoes are expected to vanish from the Turkey market soon. According to the source, some sellers that are under pressure to cash out their materials are willing to sell below $2,900/ton for localized Russian or Asian origin polyvinyl chloride (PVC) cargoes. Despite the trader decided to apply stable to increases on offers for this week, the availability of low-priced cargoes in the market does not bother the trader. ‘’We believe the low-priced cargoes will disappear from the market soon. Subsequently, we will be able to aim for better prices,’’ the trader said.
As for localized European polyvinyl chloride (PVC) cargoes, the trader reported to SSESSMENTS.COM that offers for grade K-70 recorded an increase of $150/ton compared to a week ago. On January 4, the trader’s offers were at $2,850/ton and by January 7, a $100/ton increase was implemented. The latest offers for the week commencing January 10 stands at $3,000/ton on cash in advance, EXW Turkey basis and including 18% VAT. ‘’We are aware that another seller in the market is already offering at $3,050/ton for the same cargoes. Towards the end of the previous week, we received bids at $2,900/ton for a volume of 200 tons. Unfortunately, we rejected the bids. We believe in the next seven to ten days, polyvinyl chloride (PVC) prices will go up by another $50/ton,’’ the trader explained.
The trader pointed out that for grade K-70, both traders and plastics end product manufacturers do not have sufficient inventory. As for other grades, offers remain stable from a week earlier at $2,880/ton for European K-58 and at $2,540-2,560/ton South Korean K-67, all on cash in advance, EXW Turkey basis and including 18% VAT. On the supply front, SSESSMENTS.COM was told that despite multiple attempts to discuss with one of the European producers requesting some quantities, the producer still did not provide any allocation up until now. ‘’Even though the producer did not make an official announcement that they will skip offering to Turkey market, it is already way past their usual schedule. As such, we think the producer will not make any offering for January shipment,’’ the trader stated.
