Saudi Arabian homo PP offers post renewed drops in Turkey
Saudi Arabian PP offers are currently reported around $20-50/ton lower from a week earlier at $1200-1220/ton for fibre and at $1200/ton for raffia, both on CIF Turkey equivalent, subject to 6.5% customs duty, cash basis. Buyers believe that prices from the region may break below $1200/ton CIF soon considering lower costs and bearish Asian PP markets. The latest Saudi Arabian homo PP raffia levels are reported at $1130-1160/ton CFR China so far this week. A few traders, meanwhile, claim that the PP market has already broken below the $1200/ton threshold on CFR Turkey basis.
“We had expected to see a revival in the market for August but the recent political unrest changed our expectations and kept the market quiet even though many players do not have material. Consumers are absent from the market and this has resulted in an unfavorable supply-demand balance," commented a bcf manufacturer in southern Turkey. The converter also claimed that he is covered until the end of this year.
Another converter also said that they are planning to make some purchases, but added that they are waiting to hear new August prices as they believe that prices will post further declines.“Prices continue to move south amidst lower costs and political unrest in Turkey,” said another bcf manufacturer in the south.
In the meantime, PP non-woven and BOPP prices were reported for a Saudi Arabian origin at $1235/ton and $1240/ton, respectively, on CIF Turkey, subject to 6.5% customs duty, cash. A source from a producer commented, “We concluded some deals for fibre and non-woven after negotiating with our customers. Demand from the carpet industry is still weak while spunbond demand is better and BOPP demand is steady.” Some fibre converters in the south are known to be keeping their factories offline since the holidays, citing discouraging end product orders.
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