Local HIPS regains its premium over GPPS in Turkey

In Turkey, local HIPS prices have been gaining their premium over GPPS prices since the two markets traded almost at par in the first week of February. According to ChemOrbis Price Wizard, the gap between the two products currently stands at $110/ton.



Source: ChemOrbis Price Wizard

In the distribution market, the overall GPPS range was down $30/ton on the low end to be reported at $1920-2010/ton ex-warehouse Turkey, cash inc VAT amidst the recent downward corrections in the import market and mediocre demand. Yet, local GPPS prices between $2060-2100/ton were talked over the past one month in tandem with rising costs of imports. “These prices were deemed overrated by many players while the increases lost steam in line with the easing supplies in the locally-held market,” a distributor commented.

However, the HIPS tightness remains in place as many distributors confirmed having no material on hand to offer, which helped the market to hold flat. The overall HIPS range was unchanged on the week at $2050-2125/ton inc VAT. A manufacturer commented, “The downward pressure on GPPS is more visible as supply for HIPS remains tight while it is comparatively ample for GPPS.”

Lower feedstock costs in Europe and Asia are in line with falling crude oil prices, which has been hovering below $48/barrel recently. These continue to weigh down on Turkey’s PS market despite the high season. On another note, the lack of PS supplies from Iran ahead of Newroz Holiday may counterbalance weak demand and keep the softening in check to some extent, players remind.