PP sentiment firms up on sellers’ side in Turkey
“PP prices were unable to rise this month given limited demand in Turkey. The firming in China was rather hesitant up until this week and this failed to boost the sentiment here. Mid-Eastern and Iranian sources had to trim their offers to entice buying appetite earlier in July, except for homo PP raffia as it faced tight supplies amidst quite limited cargos from Iran and Egypt,” summed up a player. According to a market talk, some Saudi Arabian suppliers and large traders in Turkey intend to return with hike requests for next month.
According to a trader, PP prices are set for hike attempts from regular suppliers and thus, he does not rush to sell his homo PP cargos nowadays. “Now that prices are displaying a firmer trend in Asia amidst improved activity, some traders in Turkey started to take positions.” he noted.
Nevertheless, buyers in Turkey approach the possibility of increases for August cautiously out of expectations for stable to softer propylene contracts for August in Europe.
Moreover, some claim that the firming in China was driven by rising futures market and higher costs of coal rather than a strong demand. A large manufacturer expects no upturn for PP, saying, “We are cautious about the sustainability of increases in China. Moreover, new monomer contracts are likely to settle with modest decreases in Europe, which may put a cap on any hike target of suppliers.”
A sack maker stated, “The previous low ends became scarce in the local PP market given some delays of Turkmenian cargos. Sellers might only try increases of $15-25/ton considering the fact that end product demand did not show a visible improvement despite the high season.”
Turkey’s PP market followed a bearish trend between March and May this year before prices rebounded and rose in June. Nevertheless, the upward momentum lost steam amidst weak demand in the pre and post-Eid period between the second half of June and so far in July.
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