West European PVC comes under $1100 in Turkey

23. Feb. 2010

During the month of February, Turkish players reported seeing more European origins offered into the market compared to January, including Central European offers which have been scarce for several months.

These European PVC k67 offers have been in the range of $1100-1140/ton CFR Turkey, cash basis in February. This price range has been very competitive compared to the alternatives with the exception of Egyptian origin which is also duty free and standing at $1060-1090/ton with the same terms.

US origin has been another major player in the market, but with prices at $1010-1050/ton, subject to both 6.5% customs duty and $45/ton anti-dumping duty, it is mainly workable for competitors with re-export documentation.

Nevertheless, despite the competitive advantage of European offers, imports have not been popular in Turkey this month due to lower local prices available in the distribution market as a result of slow demand.

This week, however, a trader received an offer from Northwest Europe under $1100/ton at $1090/ton CFR Turkey, cash. With the depreciating euro, European origin offers continue to gain a competitive advantage. At yesterday's official exchange rate, the offer comes to around €803/ton, while this figure may be higher considering the depreciation of the euro today following the US Federal Reserve's rate hike announcement last night. Compared to Italy's PVC market, this price would form the high end of the market level.
[Chemorbis]