PVC buyers prefer local markets in India, Turkey

Import PVC prices to India and Turkey have been steadily firming up since mid November last year in line with the global upward trend, as per ChemOrbis. Nevertheless, buying interest towards these rising import offers has been limited, particularly in recent weeks because buyers have shifted their attention to the local market, where they are able to find more competitive offers. Although firming import prices should pave the way for higher local prices, distributors appear to have started to give away discounts in order to entice sales, proving the complaints about subdued demand. Turkey’s local PVC market has been retreating inch by inch since the beginning of this year regardless of the gradually firming import prices. The local market has completely lost its premium over imports after including the applicable customs duties and antidumping duties, providing more competitive prices for prompt materials to Turkish buyers. According to some sellers in Turkey, these lower prices in the local market are stemming from the liquidity issues, which force some distributors to sell below their replenishment costs. One buyer said, “We purchased 800 tons from the local market and may purchase another 500 tons next week. We are not searching for import cargoes nowadays.” Another large buyer said, “We find local materials to be more competitive and we continue to purchase when we find attractive prices.” A similar picture is being drawn in India. A trader based in Ahmedabad said, “The locally held cargoes are being offered at more competitive levels these days. That’s why, I prefer to meet my requirements from the local market for reselling purposes.” He also underscored that at least 70% of Indian buyers are unwilling to buy import cargoes if offered above US$1050/ton CIF India. A Tokyo based trader who is making offers to China, India and several Southeast Asian countries said, “We received bids from our Indian customers at US$1050/ton, standing US$10-20/ton below our offers.” A Delhi based trader also told ChemOrbis, “The offers in the local market are stable this week while import offers are too high for us to accept. The overall slowness of demand is stemming from poor end product markets. Many buyers are either buying their minimum requirements or remaining on the sidelines.”
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Complete Herbert Olbrich cushion vinyl flooring line