Sentiment for PP, PE shifts up on sellers side in Turkey
A PP trader reported, “We received a raffia offer from an Indian producer at $1030/ton CIF Turkey, subject to 3% duty, cash during the fair. We placed a bid at $1000/ton but the seller is not willing to step back.”
A global producer reported selling out their Saudi Arabian PP and PE quotas for December at stable to slightly lower levels compared to his initial announcements. “We cleared our remaining stocks during the fair while we are waiting to receive January guidelines from our headquarter now. The sentiment firmed up due to higher crude oil prices and we are receiving more inquiries nowadays,” a producer source noted.
Sellers were less willing to concede to additional discounts during the event, a Turkish packager also confirmed. “We don’t expect to hear considerable increases though as demand is generally muted due to the low season. We will continue to buy our basic requirements,” said a packager.
A trader is skeptical about the firmer sentiment. “Sentiment improved due to higher energy costs. LLDPE is a bit limited this week while not much PP raffia is coming from Iran either. We are not hearing the previous American and Uzbek prices at competitive levels any more. However, we are not sure about whether it will last or fade soon as purchasing volumes remain limited,” he stated.
A manufacturer also commented, “We can say that expectations for further price cuts faded and a stable to slightly firmer sentiment is in place for PP and PE now.” According to a sack maker, sellers are trying to lift the market by around $15-20/ton, whereas many manufacturers are in a waiting mood and the fair was not great in terms of business.
A carpet producer opined that PP prices were on a softening trend due to the resistance from buyers while sellers are trying to push the market upwards nowadays. “However, the Turkish market is not active enough for a real upturn. Prices may hover at current levels unless crude oil prices hit $60/bbl or a sudden shutdown appears from PP producers. Currency issues hampered trade a lot in the recent months. Prompt supply in the south is rather limited but plentiful offers are available for new shipments. It is balanced with moderate demand levels.”
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