Very similar to this year, PVC markets were falling in June 2011 both in China and Turkey with Asian offers being revealed with decreases for July shipments, as per ChemOrbis. Sluggish demand and softening upstream costs were mainly blamed for the downturn at that time. Following this decreasing trend, both markets saw stabilization in July last year.
In China, Asian producers approached the PVC market with large price decreases of US$110-130/ton for their July offers in 2011. They attributed these sharp decreases to the globally weaker demand and competition from the lower priced American PVC cargoes. In the Turkish market, PVC prices steadily retreated during the course of June last year with import offers losing US$193/ton on average. Apart from weak-supply demand dynamics, distributors’ destocking activities also paved the way for large decreases. Right after these sharp decreases, both markets witnessed stabilization in July 2011. In China, balanced supply-demand and firm upstream costs prepared the ground for prices to stabilize while the lack of stock pressure helped sellers hold their PVC offers steady during July in Turkey. When looking at this year, a similar picture appears to be in place. A major Taiwanese producer pioneered July PVC offers to China issuing a US$70/ton decrease from June, as per ChemOrbis. The producer has cited the same reasons for their decrease decision recently. In Turkey, import PVC prices have retreated US$75/ton on average in the first two weeks of June. Comfortable availability as well as the ongoing lack of buying interest is being blamed for the current decreases.
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