Turkey’s import PP market hits 4-month low
Meanwhile, the gap between homo PP raffia and fibre widened to almost $70/ton this week, as can be seen on the graph above, which points to the largest premium of fibre over raffia since early February. Although the market registered drops for all PP grades in the recent months, PP raffia saw more rapid decreases amidst comfortable supplies in line with the return of Egyptian source to the market following a PP shutdown.
Following the latest declines, meanwhile, Turkey is about to lose premium over China’s import market, where prices also tracked a soft trend for another week due to the undigested local stocks and lower upstream costs. Currently, the delta between import PP prices in Turkey and China points to the narrowest figure since January, according to the graph above from ChemOrbis Price Wizard.
This week, Saudi Arabian PP raffia offers are reported at $1040-1050/ton CIF Turkey, subject to 6.5% customs duty, cash, down $30/ton on both ends from last week. PP fibre prices, meanwhile, are stable to $20/ton lower to be reported at $1100-1120/ton with the same terms. Duty free Israeli PP fibre was traded at $1160/ton CIF, cash, indicating a $60/ton decrease from mid-April deals for this origin.
Central Asian PP offers are down further, with Turkmenian PP raffia being offered at $1050/ton, CPT Turkey, subject to 6.5% customs duty, cash, down $30/ton. Iranian PP fibre prices are down to $1130-1135/ton CPT/FCA, subject to 6.5% duty, cash, $10-25/ton below last week.
“We are not optimistic about the near term market outlook while the market may not turn up before mid-June or July considering the facts that China’s PP market remains weak, energy prices went down and purchasing activity in Turkey may remain limited,” said a trader. A sack maker similarly commented, “PP prices are likely to move down further now that Ramadan is ahead.”
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