Marginally higher offers in global PVC markets out of USA, import PVC offers, PVC buyers, pipe producer, PVC prices

Marginally higher offers in global PVC markets out of USA

27-Jan-11

According to players’ reports, global PVC markets, including China, Turkey, Egypt and Italy, have been seeing slightly firmer PVC offers out of the US recently, as per Chemorbis. The upward movement seen in US import offers can be attributed to the slightly firming trend seen in other global markets for February, particularly after initial offers to China were announced higher for the month, along with higher ethylene costs in the US which are currently standing 1-1.5 cents (US$22/ton) above the early January level. In China, after initially coming with increases of US$50/ton for February shipment cargoes, sellers of US origin were able to sell most allocations with US$30/ton increases over January level. A trader, who feels comfortable regarding his sales performance, stated that import PVC offers are likely to stand firm over the near term, considering the energy costs. Looking at the Mediterranean region, players in Turkey, Italy and Egypt also witnessed slightly higher import PVC offers this week. Due to widespread expectations about further firming in February, some PVC buyers in Italy and Turkey are showing buying interest for import US cargoes. A pipe producer in Turkey reported purchasing some US material this week despite sufficient stocks, as he is aware of the fact that PVC prices have risen since last week. In Italy, some volumes scheduled to arrive next week were sold for US origin. A trader reported that he was able to sell good volumes of US PVC in the second half of this month thanks to higher priced European materials and the parity rate which rebounded to 1.36. The trader, who reported receiving higher February offers from one of his US suppliers, warned that other US suppliers have also announced that they will be seeking higher prices next month. Several converters in Egypt also reported receiving slightly higher import PVC offers for US origin this week, although no done deals have been reported at the new levels so far. A pipe producer commented that sellers are firm with their prices, noting that a trader refused to offer below their new level this week.