Turkey PVC market continues to weaken as demand slows and Chinese supply pressures intensify

The PVC market in Turkey extended its downward trend this week, marking the fourth straight week of decline after the sharp surge seen in March. Despite high upstream costs, the market has shifted toward a demand-driven phase, with buyers remaining cautious ahead of the Labor Day holiday. Weak consumption combined with increasingly competitive Chinese imports has accelerated the correction, although prices are still elevated compared to pre-war levels.

Strong rally followed by gradual correction

Recent price movements reflect both the earlier surge and the ongoing adjustment. After rising by 65% in the duty-free segment and 52% in the dutiable market during March, PVC K67 import prices on a CIF Turkey basis have fallen by around 16% and 13.5% respectively over the past four weeks. Even with this decline, prices remain significantly above levels seen before the conflict, indicating a normalization rather than a full reversal.

Weak demand and Chinese competition reshape pricing

In the import market, dutiable K67 prices dropped to around $930–990 per ton CIF Turkey, cash, with offers above $1000 per ton largely disappearing. This shift highlights growing resistance from buyers, as converters push back against earlier price increases amid weak downstream demand. The break below the $1000 per ton mark signals a clear change in market direction.

Chinese PVC continues to apply strong downward pressure, with offers falling to nearly $900 per ton CIF Turkey, particularly for acetylene-based grades. These aggressive levels have reset the lower end of the market, forcing other suppliers to reduce their prices to stay competitive.

US material under pressure as sellers seek to place volumes

US-origin PVC has also declined, with sub-$1000 per ton CIF levels being discussed and occasionally confirmed. However, some market participants suggest that these levels may reflect short-term selling strategies rather than a stable trend. Still, the movement highlights the extent of current pressure in the market.

Duty-free segment also declines amid weak buying

In the duty-free segment, K67 prices fell to around $1050–1110 per ton CIF Turkey, cash, down by $50–70 per ton over the week. Suppliers from regions such as South Korea and Egypt have reduced their offers in an attempt to stimulate demand ahead of the May holiday period. However, buying activity has remained limited, indicating that lower prices alone are not enough to revive demand.

Market outlook depends on Europe and demand recovery

Looking ahead, attention is shifting toward European PVC producers, who have been less active in export markets recently. With May ethylene contract prices expected to settle slightly higher, producers will face a choice between maintaining margins or lowering prices to regain market share in Turkey. Given the current environment of weak demand and strong competition from China, their strategy will be crucial in determining the next phase of the market.

Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.