Mid-East PP raffia breaks below $1000 threshold in Turkey
A trader in Turkey reported receiving a PP raffia offer for a Saudi origin today at $980/ton CFR, cash, subject to 6.5% duty. The offer level is still not widely captured at the time of press. In the earlier days of the week, buyers mostly received PP raffia offers from the Middle East at $1000/ton with the same terms. Sellers also reported receiving bids at $950/ton.
Players speculate that there are Indian offers below this threshold, although this news is not confirmed. Demand remains weak across the PP market with buyers preferring to hold their waiting stance in the midst of their year-end book keeping and unsatisfactory orders from export markets as well as ongoing bearish expectations based on China.
Based on the netback to China, Indian and Middle Eastern offers can be theoretically offered as low as $920-950/ton on CFR Turkey basis. Rumor has it that some import PP cargos are now being diverted to Turkey from China through re-exports while Chinese coal-based PP is also set to emerge in the Turkish market soon.
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