Turkey’s PP market posts remarkable declines
Source: ChemOrbis Price Wizard
For Middle Eastern homo PP cargos, the most remarkable drops were observed for fibre grade. A couple of players reported that Omani fibre prices were down to as low as $920/ton towards the end of the week while others said that prices have not fallen to that level yet. The overall Middle Eastern PP fibre range stood at $920-985/ton CIF Turkey, subject to 6.5% customs duty, cash, down $75/ton on the low end and $35/ton on the high end from last week.
A carpet manufacturer, who has already closed their purchasing year, argued, “The market will continue to move down as demand does not show any signals of a pick-up and crude oil prices are down steeply. Prices may reverse direction in February at the earliest.”
PP raffia prices from the region, meanwhile, did not see much change at $950-980/ton with the same terms due to a limited number of price inquiries and some seller’s efforts to remain firm on their prices. “Sellers will have to follow suit and lower their prices eventually,” a sack maker opined.
Indian PP raffia offers from traders were reported to be at $930-980/ton CIF Turkey, subject to 3% customs duty, cash. The level indicated $20-30/ton drops from the week before. Early in the week, an Indian supplier said, “We prefer not to offer to Turkey as our previous levels at $1000/ton are not workable anymore.”
Russian PP raffia prices were initially reported at $950/ton early this week, before lower counter bids from buyers pushed the level down to the $900/ton threshold. In China, Russian homo PP prices broke below the $800/ton CFR China threshold on Friday, meanwhile.
For Central Asians, Turkmenian PP raffia posted a hefty drop of $70-80/ton to be reported at $920-950/ton CPT Turkey, subject to 3% customs duty, cash. These cargos were sure to arrive before the duty for this origin is lifted to 6.5% by January, buyers underlined. Iranian PP fibre prices broke $1000/ton threshold this week, while they were deemed as short sales by some players. Overall, Iranian PP fibre prices at $960-1020/ton decreased $30-90/ton with the larger drop appearing on the low end.
Heading to the year end, expectations hint at further price cuts for PP over the near term based on the recent crude oil prices that slightly broke below $35/bbl and hit the lowest levels unseen since 2009, according to ChemOrbis Price Index. In China, overall import homo-PP raffia and injection prices are currently reported at $790-860/ton on a CFR, cash equivalent basis. Indian and Mid-Eastern homo PP at $810/ton CFR China reveals the sustaining theoretical pressure from Asia on Turkey’s import PP market.
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