Decreases gain momentum in Turkey’s local PP market

The retreating trend in Turkey’s local PP market has gained momentum this week after the market broke below the $1500/ton inc VAT threshold ($1271/ton exc VAT) for raffia and fibre last week. The lack of demand from buyers combined with Petkim’s price cut which came today reinforced the weak scene.

Even before the domestic producer, Petkim, issued $30/ton decreases on its list PP prices earlier today, medium and large converters reported receiving more competitive offers from distributors compared to last week.

Currently, the overall homo PP raffia range stands at $1420-1480/ton ex-warehouse Turkey, cash inc VAT ($1203-1254/ton without VAT) amidst deals at $1420-1440/ton for prompt materials in the west region. Meanwhile, the range indicates a decrease of $20-50/ton week over week.

“Sellers who are sitting on stocks have reduced their offers in order to boost their slow sales with some of them trying to liquidate stocks given weak market expectations for the coming term,” players opined.

A distributor noted, “We had to lower our local homo PP raffia prices given the pressure from aggressive prices from other distributors as well as from the domestic producer. On the other hand, we have not received any indications from global producers about lower prices for November. The recent drops are mainly stemming from slow buying interest in Turkey’s local market.”