PVC offers from USA and Mexico continue to rise across the globe

Export offers out of the US and Mexico have been heading north since early July based on higher costs and firm demand in global markets, as per ChemOrbis. This week, players in India, Vietnam, Turkey, Egypt and Italy have reported brand new increases on PVC offers from North America for fresh shipments. Apart from cost pressure, another factor pushing PVC prices from the US higher is the firm demand from India, according to market players. A distributor in India reported receiving higher US PVC offers this week. He said, “Demand is steady in the local market and the allocations from local suppliers are extremely limited. That’s why we concluded deals for the US material we were offered.” Another distributor affirmed higher US PVC offers in the import market and said that the availability is limited in the local PVC market, which has pushed a domestic producer and local distributors to raise their offers. A pipe converter in India who is offered PVC out of the US at a higher level commented, “Even though we think that the PVC market will not soften in the near term, it does not make sense for us to import from the US anymore after adding the anti-dumping duties on top of the recently higher offers.” Pointing to the recent supply constraints and revival in demand in the local market, a distributor mentioned that local supplies may go back to normal levels once the import PVC cargoes secured from the US arrive to the ports in India. A Vietnamese buyer also reported receiving a US$20/ton higher PVC offer from the US this week. When compared to the beginning of July, the new offer indicates a US$70/ton increase. “Demand for our end product applications including PVC doors, wall panels, pipes and fitting is picking up. We hope that it will improve more in the near term,” he commented. He also thinks that the PVC market will hold firm on the back of higher monomer prices and better demand for PVC applications. PVC cargoes from the US have been steadily moving higher in Turkey on a weekly basis since early July as well, as per ChemOrbis. Offers reported from the country this week are standing US$70/ton above the offers made in early July while Mexican offers indicate US$60/ton increases when compared to the same period. A profile manufacturer commented, “Although we secured a lot of cargoes before the upturn, we are still looking for fresh cargoes to replenish stocks. Therefore, we are searching for new prices in the import market.” In line with the global trend, US PVC offers to Egypt have gained US$40/ton in the past four weeks. A trader expressed his sell idea this week with a further increase at the high end of the overall range and said, “We cannot lower our target price despite slow demand. We prefer to observe the market before deciding on whether we should lower our price, but we hope to see revived demand after Ramadan.” When looking at the Italian market, Mexican PVC cargoes appear to be dominating the import market this week. Since this origin is exempt from duty, it is more favorable for Italian buyers with respect to the US origin. Two different buyers have concluded deals this week for Mexican PVC k67 and k70 at prices standing €50-75/ton above the offers reported in early July for cargoes to be delivered in September. Another buyer has received a much higher offer for Mexican PVC k70, standing €50-60/ton above the deals reported this week.
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