More European PP, PE cargoes find their way to Turkey
In Europe, both PP and PE markets have fallen in June as supply is comfortable and demand remains weak. Besides, spot naphtha and monomer prices were pulled down by falling crude oil prices.
“We concluded our June deals for modest quantities with larger decreases than that of the propylene contract. We believe there is room for the market to fall further in July amidst high stocks,” PP buyers across Europe highlighted. An Italian buyer reported avoiding building any stocks citing weak expectations for the coming term. HDPE supplies are also widely comfortable across Europe amidst thin demand.
As a consequence of discouraging demand and comfortable supplies in Europe, Turkey has been receiving more PP and PE offers than usual from the region as a nearby market since last week. West European homo PP raffia and injection cargos were traded at more competitive levels than other dutiable origins while South and Central European LDPE grades as well as HDPE blow moulding showed up in the market.
“We may continue to see more European PE offers if the region continues to face slower activity ahead of summer holidays. A South European source started to offer LDPE recently while more prices for Central European origins may emerge for the same product,” a Turkish converter stated.
A trader commented that the lack of healthy buying appetite in Europe caused regional sellers to turn to Turkey these days although the euro/dollar parity is not in favor of these sellers. “We are not sure how long these offers will continue to show presence in Turkey’s import market, where prompt supply is already comfortable for LDPE and HDPE grades, in particular,” he added.
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