Tight supply pushes European PPRC pipe type 3 prices up in Turkey

Market players in Turkey reported higher PP random copolymer (PPRC) pipe type 3 prices from Europe this week, blaming limited supplies from the region in tandem with LyondellBasell’s force majeure declaration on its natural random copolymer PP supply from Brindisi, Italy due to some technical issues.

February propylene settlements, which were agreed €45/ton higher from last month, is cited as another factor pushing PPRC pipe type 3 prices up.

A pipe manufacturer commented, “Supply is limited from Europe as LyondellBasell declared a force majeure while Borealis and Repsol also limited their allocations. It is hard to obtain the previous levels of €1320-1330/ton CIF Turkey, cash no duty.” Import European PPRC type 3 prices are currently reported at €1350-1380/ton. Late last week, offers were standing at €1315-1320/ton with the same terms.

According to a different manufacturer, prices are supported by both higher monomer settlements in Europe and Petkim’s PP price hikes on Monday. The buyer stated, “Asian players have returned to the market following Lunar New Year holiday in China on a firm note due to strong upstream costs.

Therefore, we do not expect to see any downturn in prices for the near term. However, buyers will try to show resistance to the higher offers. Yet, European suppliers claim that the market is tight due to LyondellBasell’s force majeure, which is making it hard to negotiate with them.”