Turkey’s import PP market sees lower prices for August
A converter said, “Sellers who normally do not call us even tried to offer some Middle Eastern materials to us this week. However, we are not active in the market for now as risks are up given economic concerns. Not only manufacturers but also sellers are adopting a cautious stance which brought the market to a standstill.” Players in the southern regions of Turkey report cash and collection issues in the market, meanwhile, saying that PP discounts are likely with no supply concerns on the near horizon.
Overall prices ranges formed by Saudi Arabian offers indicated $10-20/ton softening when compared to last week. “A Saudi major, whose prices usually form the high end of the market, reduced its prices and seems ready to give further discounts. Homo PP prices may reach below the $1000/ton threshold soon,” a sack manufacturer argued. Indeed, some speculations already began about prices below the $1000/ton CIF threshold but they were not confirmed by primary sources at the time of press.
Iranian PP prices moved down $15-10/ton particularly for raffia grade week over week, while fibre also edged down by $5/ton on the low end given low buying interest from converters. Uzbek PP fibre and Turkmenian PP raffia was talked at competitive levels, according to market participants. Similarly Indian PP raffia was said to be offered with $30/ton drops to traders this week.
Apart from these dutiable cargos, European PP offers saw some discounts for PP raffia after coming with rollovers from last month in tandem with steady propylene settlements in the region. Egyptian homo PP prices followed a steady to slightly softer trend compared to the levels reported in late July. In the meantime, following Saudi Arabia, Egypt remained as the second top homo PP supplier of Turkey. Exports to Turkey in June climbed 6% to 20,624 tons from May. In the first six months of 2016, imports from Egypt hit 122,803 tons, a 70% jump compared to the first half of 2015.
A couple of traders claim that the softening may be kept in check to some extent unless prices in China really decrease. So far, import homo PP prices in China do not point to a downwards pressure on Turkey’s import market, they underline.
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