Europe PVC export prices fall on Turkey currency volatility

13 August 2018 12:07 Source:ICIS News

LONDON (ICIS)--European polyvinyl chloride (PVC) export prices and PVC prices in Turkey have fallen as demand has been reduced by the volatile lira and economic issues, according to sources late on Friday.

The export spot price was assessed at $865-885/tonne FOB (free on board), down $10/tonne on the high end and $20/tonne on the low end. The Europe-Turkey PVC CFR (cost and freight) price fell by the same amount and was  assessed at $910-930/tonne.

The lira has collapsed against the dollar, falling to nearly than 7:1 as of 13 August on the back of the broadening  sanctions fight  between the US and Turkey. The Turkish market is the largest PVC export destination for Europe.

 As a result of the volatility, the PVC market was mostly on pause in terms of buying and selling activity. There were few new transactions taking place. Due to the reduced demand, new achievable PVC spot prices were mostly quoted below the previous range and between $910-930/tonne CFR. Public holidays in Turkey in the second half of August should  further reduce demand.

Although some European players continued to offer prices in the $930-940/tonne CFR range, these prices were no longer seen as achievable. The ICIS range has been adjusted downwards accordingly.

Additional offers in the Turkish market included Ukranian PVC at $880/tonne CFR, and Egyptian PVC in the high $800s/tonne CFR. Customs duties and anti-dumping rates in Turkey are as follows:

Region PVC anti-dumping PVC customs duty
Europe excluding Germany - -
Germany 16.64% -
Egypt - -
Mexico - -
Korea - -
Indonesia - 6.5%
Ukraine - 6.5%
Russia - 6.5%
Saudi Arabia - 6.5%
US 18.81% 6.5%

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By Chris Barker