Global markets including China, Turkey and Egypt continued to see firmer American PVC prices during this past week, as per ChemOrbis. Firmer upstream VCM costs in USA leading to higher export PVC prices out of the country helped the price of American PVC cargoes to move up in global markets. Shutdowns ate VCM plants at Japan’s Tosoh and Mexico’s Pemex are amongst the reasons creating an upward pressure on the US VCM market. Japan’s Tosoh had halted VCM operations at two plants and a third plant is already under maintenance. The No.1 unit currently awaits government approval to restart. Tosoh has not issued a force majeure on VCM supplies but curtailed quantities supplied to customers. Mexican Pemex had shut a 273,000 tpa VCM plant in Veracruz on October 26. The company is expected to restart their plant during this week. However, the absence of Pemex has led to increased demand for VCM from the US. Such bullish developments created additional opportunity for American VMC to be sold and spot prices firmed up, supporting PVC export prices.
In China, an initial December offer for American PVC emerged with an increase of US$30-40/ton from November done deal levels, while the overall American offer range in Turkey moved up week on week, as per ChemOrbis. Egypt has also seen a rise in American PVC offer range by around US$10-40/ton on the week. Despite the fact that import American PVC prices are firming up, overall demand does not support sellers in those countries. In China, the country’s property market is slowing down, followed by the construction sector. A trader offering American PVC cargoes complained that they see no buying interest from buyers while adding that they are open to negotiations in return for firm bids. In Turkey, overall PVC demand is not encouraging, either, but according to a trader, who sold some American cargoes at the low end of last week’s overall American range right before prices were raised for December, reported that buyers acknowledge that PVC prices are moving higher out of the US. He also added that buyers are therefore more willing to make fresh purchases albeit in small amounts.
Meanwhile, in Egypt, the country is still struggling with the aftermath of the Egyptian Revolution, which started in late January this year. The political turmoil has not settled in the country yet while the Egyptians are currently going through layered government elections. Elections for the People’s Assembly, parliament’s lower chamber, will be held in three stages and end on January 10. Then the elections for the Consultative Council, upper chamber, will start on the 22nd of January and will be concluded on January 29. This election will also be held in three stages. The presidential elections will take place by June 30. The elections have exerted a major influence on polymer demand in Egypt, which was already performing poorly.