Turkey’s PP market witnesses higher price targets
In the import market, a trader reported, “An Indian PP producer withdrew its earlier June homo PP prices this week. We are now waiting to hear new offers which might be revised.” A source from the seller confirmed, “We withdrew our PP offers and are planning to lift our prices by around $20/ton.” The seller’s last June done deals were reported slightly below the $1000/ton CFR threshold.
Homo PP prices from Saudi Arabia, Turkey’s top supplier for the whole 2015 and in the January-April period of this year, were on a steady to slightly softer path. Apparently smaller discounts from sellers were observed compared to the previous weeks as the bearish trend lost steam.
Traders stated, “We heard that a global producer has issued $30/ton higher offers for Saudi Arabian homo PP, while no deals are concluded so far.” Sellers continue to receive either scarce or lower counter bids from their customers given the foggy future outlook. A trader reported, “We still receive lower bids below $1000/ton CIF for Saudi Arabian fibre and our sales are still sluggish.” A carpet maker also predicted that the market may soften a bit more and break this threshold as it is not the season and purchasing activities would remain limited. “We are covered until August,” he added.
In the meantime, Iranian PP prices became scarce in recent days with a very limited number of offers reported within last week’s ranges. Traders are awaiting fresh offers from the country soon amidst market talk that higher price levels are on the way.
Most buyers believe that no price hikes will be achieved in the near term, saying, “There is not enough support for an upturn considering lower oil prices which moved down to $48/bbl on the NYMEX after hovering at $50/bbl. Plus, discouraging end product orders in some industries might keep demand improvements limited next month.” Sellers, however, expect to see a recovery in demand after holidays citing delayed purchasing activities. “Even if the market does not rise, it will stabilize,” they say.
A bcf maker noted, “Declines lost pace as sellers are trying to create a momentum in the market. We are just receiving our previously purchased cargos and thus we are not considering buying much volume. Prices are likely to gain stability although no major gains are likely.” A big bag maker deemed rising targets as an effort to lift the market. “We maintain our weak expectations for the rest of June since buyers are not eager to buy large amounts ahead of holidays that will take place in the first half of July. We are not that optimistic about July either.”
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