US PVC dealt at competitive levels in Europe
Sept. 05, 2018
Initial September PVC offers have been revealed mostly stable or slightly higher from August in Europe’s local market following flat ethylene settlement. Yet, some sellers do not rule out the possibility of applying slight discounts later on as competitive import US PVC cargoes remained as a pressure point on top of an already oversupplied market.
Accordingly, US k70 was dealt at 890/ton DDP France, 60 days, 50-60/ton below the k70 range in Northwest Europe. The latest August levels for US k70 indicated decreases of around 40/ton on a monthly comparison.
US k58 was offered at 840/ton DDP Italy, 60 day, which is 110/ton below the current local range.
This, in turn, is likely to put pressure on regional PVC suppliers. Furthermore, PVC supplies are known to be ample across the board due in part to slow export sales to the one of the main export destinations, Turkey. US PVC imports to Turkey have recently reduced visibly given retaliatory measures taken against the US starting from May this year.
According to ChemOrbis Imports Statistics, Turkey’s imports of US PVC totaled only 1586 tons in July, which represented a steep fall of 79.2% compared to June when the figure was above 7500 tons. The figure also slumped by 88% from July 2017.