Post-holiday expectations surface in Turkey’s polymer markets
Although few prices and bids were reported in Turkey given the ongoing holiday lull, expectations seem to have been shaped for the post-holiday period based on the global developments in the upstream and downstream markets.
In the PP market, the sentiment appeared mostly stable between sellers’ claims about limited supplies on one hand and unsupportive upstream chain on the other hand. A big bag producer commented, “We are planning to avoid the long distance cargos now that new propylene contracts in Europe settled down €50/ton and import prices in China followed a stable to soft path over the week. These factors may weigh down on Turkey ahead of July announcements.” Some traders reported limited availability from Iran but a bcf maker in the south argued, “Fibre supplies are balanced with demand and we could easily receive prices this week. We have resumed operations at our factory but we are covered until August.”
As for PE, an agent of a Middle Eastern source expressed his sell ideas with decreases of $50-60/ton for LDPE and $10-20/ton for LLDPE today, in line with buyers’ pre-holiday expectations. “We expect prices to move down further in Turkey looking at lower July announcements from a Saudi Arabian major to China, where the market remains under pressure of ample Iranian supplies on the top of the recent restarts of some PE plants in Asia.”
PVC players kept a close eye on the ethylene contracts in Europe, which were fully settled down €50/ton for July on Thursday. Some traders somehow do not expect a major impact of lower monomer contracts on Turkey, pointing to limited supplies from the region and the high euro parity. Meanwhile, lower spot ethylene costs in the US coupled with low buying interest weighed on the upper ends of American PVC prices this week.
A distributor said, “We could hardly set out new prices as demand was not there given the long holiday. Yet, we believe PVC, LLDPE and HDPE 100 are set for a stable to slightly firmer trend. Meanwhile, prompt PP raffia and HIPS supplies are limited in the local markets.”
PS players are now closely eyeing the upcoming styrene contracts in Europe amidst the recent spike in spot prices triggered by supply concerns. “PS is likely to be dominated by the direction of styrene markets. Right after the holiday, we received flat GPPS offers compared to pre-holiday week while the policy of Iranian suppliers will also shape Turkey’s PS market,” opined a converter.
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