EC announces preliminary stage antidumping probe into US-, Egypt-origin PVC imports

The European Commission announced on June 14 the preliminary stage of the antidumping duties probe against imports of US- and Egypt-origin suspension polyvinyl chloride, according to the commission's summary of proposed duties announcement, also seen by S&P Global Commodity Insights.

Among US producers, Formosa Plastics will have a 71.1% duty applied on its product; Westlake will see a 58% duty applied on its cargoes; Oxy Vinyls and Shintech will see antidumping duties of 63.7%, while all other US producers will see antidumping duties of 78.5%, according to the EC's summary of proposed duties announcement. Among Egyptian producers, the Egyptian Petrochemical Company will be subjected to a 100.1% duty and TCI Sanmar is subjected to 74.2%, while all other Egyptian producers might be subjected to 100.1%.

The commission's antidumping investigation into US and Egyptian PVC exports was announced Nov. 15, 2023. EU producers on Oct. 2, 2023, lodged a complaint against PVC imports from the US and Egypt from October 2022 to September 2023 at prices so low that European producers could not raise prices in line with high upstream energy costs.

Market participants expected the provisional stage probe to happen in May, although one trader said it was now delayed by a month.

One source said the impending antidumping duties decision had put several US import cargoes in limbo as importers were trying to figure out the final cost of any impacted cargoes shipped pre-antidumping duties decision but landed after the announcement.

The delay was particularly more acute given the imports from Asia were still impacted and limited by the ongoing issues in the Red Sea region. Supply security remains a key concern for European converters despite weak general demand.

Although weak market fundamentals occupied the minds of producers, consumers and traders, the impending decision on the antidumping duties level that the commission was planning to apply was more concerning to their immediate business, given the restricted product availability from Asia and the Middle East.

"The key thing for me right now is ADD [antidumping duties]. So, the market awaits feedback on this [issue]. Asia trade flow has been closed for some time now because of [the] ongoing Red Sea issue," a trader said.

One trader explained the process undertaken by the EC as it completes the pre-disclosure process.

"The EC will present a pre-disclosure with its preliminary findings to the interviewed/questioned parties, where there is room to give comments. The provisional regulation is expected somewhere before the summer holidays [provided politics and investigation team agree on the findings]," a producer said.

Spot prices drop amid weak fundamentals

Platts, part of Commodity Insights, last assessed Free Delivered Northwest Europe spot PVC prices down Eur20/mt at Eur840/mt, while FD Germany PVC freely negotiated May net contract prices were assessed Eur20 down on the week at Eur980/mt June 12.

Spot prices eased in June despite the higher cost of freight and reduced global supply following a force majeure declaration by Mexican PVC producer Orbia, May 24.

Sources pointed to weak demand and ample supply as competition from suppliers intensified. Buyers had the pick of suppliers and hence this was putting pressure.

"From my perspective, demand in June is not healthier than in May. Demand is still low and the availability is more than sufficient. Furthermore, price pressure remains high. So, there is still a big question mark where prices will be," a producer said.