Delta between Turkey’s and China’s PP markets sinks to below $30/ton

Turkey’s import PP market was gradually dragged down during the first half of December in the wake of the year-end lethargy. Lower bids sent Saudi Arabian offers to below $1150/ton for raffia and $1200/ton for fibre all CIF Turkey, subject to 6.5% customs duty, cash.

In China, the temporary truce with the US boosted sentiment last week. Import PP prices firmed up on the heels of higher futures market following a two-month long bearish trend although the recovery was not sustained as futures turned down and demand was muted.

According to ChemOrbis Price Index, Turkey’s premium for homo PP over China has narrowed to around $28/ton on a weekly average when compared to almost $120/ton in late November. This was mainly because import PP prices moved further south in Turkey to hit as low as $1100/ton CIF, whereas offers in China were mostly stable week over week.

"The bottom might be close for PP in Turkey based on its smaller premium over China and lower stocks in the country," some players commented.

Saudi Arabian and Indian PP raffia offers were down by $40-65/ton from last week to $1100-1150/ton CIF Turkey, subject to 6.5% duty, cash. PP fibre prices down by 30-40/ton to $1170-1190/ton CIF week over week. The low ends were reported earlier this week, meanwhile.