Turkey’s PP and PE markets open post-Eid period on bearish note
PPH extends losses into May, prices hit three-month lows
Lackluster demand from derivative markets continued to drag import PP prices down despite the end of the holidays. Price cuts were also in line with the weakening in other outlets, including China and Europe . According to the weekly average data from ChemOrbis, Saudi Arabian PP raffia and fibre prices have hit their lowest levels since early February.
Offers were assessed at $1520-1550/ton and $1570-1600/ton CIF Turkey, subject to 6.5% customs duty, respectively. These levels indicated respective drops of $60-80/ton and $80-90/ton from the pre-Eid week. Saudi PP inj. was also down by $20-30/ton to $1580-1620/ton.
“Offers for various origins, including Russian, European, Egyptian and Chinese, came down as compared to late April. Still, price cuts seem to have failed to spur buying enthusiasm among consumers,” opined a player.
PP copolymer followed suit, with fresh May offers mirroring the global downturn. Saudi PPBC inj. was assessed $50/ton lower at $1700-1730/ton CIF, subject to 6.5% customs duty. South Korean PPBC inj. and PPRC type 3 offers slumped $50-100/ton as sellers succumbed to the persistently poor demand.
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PE shifts down following 3-month bullish trend
Similarly, import PE prices reversed course this month in line with pre-holiday expectations. Middle Eastern suppliers, including a Saudi Arabian major, issued notable drops in response to the weak demand conditions.
Still, bids were sporadic, which forced traders to adjust their initial May prices further. One of them said, “We are eager to negotiate on our offers since activity has been muted amid the shorter month.”
According to the weekly average data from ChemOrbis, Middle Eastern PE offers are now at their lowest levels since around early April.
Lower prices were in line with global weakness as prices in nearby Europe were dragged down by falling monomer contracts following a 2-month uptrend. Likewise, the depreciation of the yuan against the USD, softer ethylene prices and lingering lockdowns - which hit demand - weighed down on China’s PE market.
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