Several Major Global Markets Have Been Seeing Lower Offers for American PVC

Several major global markets have been seeing lower offers for American PVC recently, which was attributed to globally thin buying interest towards fresh, long distance import cargoes as per the plastics pricing service ChemOrbis. Chinese PVC buyers were able to purchase US origin cargoes with weekly decreases of $20-30/ton on CFR Chinas basis this week. The overall demand for import materials, however, is considered to be soft, with traders complaining that they are having a difficult time concluding deals these days. In Italy, offers for American PVC k64-65 cargoes for end-September/early-October delivery were reported at prices $20-25/ton below the August level, according to a trader. However, the current euro/USD parity rate at above 1.41 is holding the euro based prices on DDP Italy basis mostly steady compared to last month as per the plastics pricing service ChemOrbis. The offers reported for US origins at the end of last month did not meet with much interest from Italian buyers as they were looking to obtain some discounts for domestic cargoes. Italy may see further reductions in offers for US origins in the coming weeks due to slightly lower offers for this origin in the Egyptian and Turkish markets, especially if European producers concede to some discounts from their initial September prices, which were rolled over from August. After returning from Ramadan holidays, players in Turkey and Egypt also saw lower American PVC offers this week. In the Turkish market, September k67-68 and k70 offers for American PVC were reported $20-40/ton lower on CFR Turkey basis as buying interest inside Turkey remains sluggish following the extended holidays. In the nearby Egyptian market, where US origin is the main import supply source, a converter was offered US PVC this week at a price which indicates around $10-45/ton decreases from the pre-holiday levels. A buyer who received this offer reported that he is not planning to make any fresh purchases at the moment as demand is almost non-existent following the holidays. Source: Plasticsinfomart. com