Turkey PVC Market Remains Under Pressure Amid Oversupply and Weak Demand

Turkey's PVC market continued its downward trend as abundant supply and sluggish buying activity kept prices under pressure. Although crude oil prices recovered slightly following renewed geopolitical tensions in the Middle East, the improvement in feedstock costs had little influence on the PVC market, where demand remained the primary pricing factor. Comfortable product availability, distributor discounts, and resale activity by converters continued to weigh on market sentiment.

US PVC Prices Drop Below $700/ton CIF

Import prices for PVC K67 declined further across multiple origins as suppliers continued offering discounts to attract buyers. US-origin material for July and August shipments was heard trading at around $680/ton CIF Turkey, bringing prices back to levels last seen in early February.

The latest decline has effectively removed the premium that developed earlier this year following geopolitical disruptions. Meanwhile, anti-dumping duties on US-origin PVC are approaching their expiry date, with a sunset review currently underway to determine whether those measures should remain in place.

Egyptian Material Increases Competitive Pressure

The duty-free segment also weakened further, with Egyptian cargoes continuing to set the lowest market levels and intensifying competition for South Korean and European suppliers. Egyptian PVC K67 offers slipped below the $800/ton CIF mark, prompting South Korean suppliers to reduce offers from around $850/ton to approximately $810/ton CIF.

German material subject to anti-dumping duties was also offered at competitive prices below $800/ton CIF, reflecting the intense competition among suppliers.

Domestic Market Moves Closer to Pre-Conflict Levels

The local PVC market also remained under pressure as distributors introduced additional discounts to improve sales. Buyers continued focusing on reducing existing inventories instead of placing new orders, while some converters actively resold material in the spot market.

Market participants noted that prompt domestic cargoes were increasingly being priced in line with current import replacement costs from the Far East, resulting in further declines in local market values. Current domestic PVC K67 prices are now estimated to be only around $100/ton above pre-conflict levels.

Outlook

Market participants expect the Turkish PVC market to remain weak in the near term unless downstream demand improves significantly, production costs recover further, or supply tightens due to logistical disruptions.

European producers are also expected to continue targeting export markets such as Turkey as domestic demand remains weak ahead of the summer holiday season. Although the pace of price declines may begin to slow as values approach pre-conflict levels, most participants believe a sustainable recovery will depend on stronger downstream demand rather than fluctuations in crude oil or feedstock prices.

Some traders believe the market may be approaching a price floor, with one market participant indicating that US-origin PVC is unlikely to be offered below $700/ton CIF going forward.

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