Import PPH prices gain ground on restocking activity in Turkey
Since both markets moved slightly up week over week, Turkey continued to lack premium over China’s import market for the third successive week, as ChemOrbis data put it.
“Converters have been sidelined for some time out of their expectations for a soft trend in September and their sufficient stocks. However, sellers’ firmer stance and waning stock levels attracted them to the market and boosted inquiries starting from late last week,” said sellers.
As a side note, most deals were concluded at or close to the low ends of the market amid the recent resumption of restocking. “Offers on the high ends have not seen much acceptance from buyers amid attractive duty-free origins including Egyptian and European,” opined a participant.
A stable trend amid tepid buying interest after summer holidays and flat propylene settlements in Europe coupled with high €/USD parity prevented any hikes from the region to Turkey.
PP was not as strong as PE across the board as supply was more limited for the latter one in major markets. The additional capacities weighed on PP outlook for the longer run. Whether or not the recent losses in energy complex will cap further gains in China’s PP market or upstream propylene prices in Asia remains as a question mark for now.
Saudi Arabian PP raffia prices were assessed $20/ton higher at $930-940/ton CIF Turkey, subject to 6.5% customs duty, cash. Sell ideas at or above $950/ton were found too high to work and received bids at $920/ton from large scaled buyers. As for fibre, Saudi prices were assessed $20/ton higher at $1000-1010/ton whereas sell ideas at $1030-1040/ton received a lukewarm reaction from converters.
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