Local PP prices climb on sellers’ firm stance in Turkey
The prevailing locally-held homo PP raffia range stands at $1100-1180/ton ex-warehouse Turkey, cash inc VAT. The range rose $50-70/ton when compared to last week, when prices as low as $1050/ton FD Turkey were promptly available. A converter even claimed to have concluded a deal at $1020/ton for a limited amount at the beginning of last week.
According to ChemOrbis Turkey Price Index, the locally-held homo PP raffia market plunged by around $565/ton on average since the current bearish trend kicked off in May 2015.
Source: ChemOrbis Prize Wizard
“Although we do not expect polymer markets to show steep jumps on transactions, no drops are likely over the short term. Local markets witnessed moderate hikes for PE, whereas the real revival took place in the PP market. We could achieve homo PP prices at around $1070/ton inc VAT while doing back to back business before the increase from Petkim. Now, offers from distributors are rising given limited prompt supplies,” a distributor reported.
Buyers also confirmed rising price levels while some of them are skeptical about the sustainability of the current trend. “Sellers either went to the sidelines citing their lack of availability or lifted their PP offers in line with firmer stances observed for imports amidst low Middle Eastern supplies. However, no drastic increases are likely on transactions, we believe, since oil prices are weaker recently and China may not buy as much as hoped in the post-holiday period,” some converters argue.
A sack maker opined, “There has been a panic mood among buyers since late last week amidst higher PP offers. We will purchase some material if we find prompt material. On the other hand, end business is doing normal but not great, which is a factor that does not support a sustained firming trend.”
Late last week, domestic producer Petkim increased its list prices for PP by $15/ton for fibre and by $10/ton for raffia and injection when compared to its previous levels.
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