Turkey’s import PP market sinks to 2 month low
Saudi Arabian PP raffia prices were down $10-40/ton on the week to $950-960/ton CIF Turkey, subject to 6.5% customs duty, cash. PP fibre prices from the country declined $20-25/ton to $975-1010/ton on cash equivalent basis with a deferred payment deal forming the low end.
Iranian PP offers lost another $10-20/ton for raffia grade to be given at $970-1000/ton CPT Turkey, subject to 6.5% customs duty, cash. Prompt Iranian PP fibre emerged at more competitive levels than last week at $1020-1030/ton FCA, subject to 6.5% duty, cash.
Meanwhile, Egyptian PP raffia prices plunged $40-60/ton to $1040-1060/ton DAP Turkey, cash no duty compared to initial August levels. Fibre was down $10-20/ton to $1080-1100/ton with the same terms on the week.
Source: ChemOrbis Price Index
Players concur that the market may not fall much further from now on and the market is near the bottom. Early September expectations, in the meantime, vary among players. Crude oil prices soared as talks about an output freeze came to the forefront once again, while Turkey is currently trading at par with China. Plus, Europe is projected to return on a firm tone from summer holidays. All those factors point to the possibility that the market may be about to bottom out.
“Prices may not fall further as Turkey is the lowest market already across the board. Overall, trading appetite is low at both buyers and sellers while suppliers may leave Turkey in the longer term,” comments a sack manufacturer. A distributor opined, “We are very close to the bottom for PP. The propylene market in Asia is firm, while Europe is expected to rebound after summer holidays. Crude oil prices hover near $50/bbl. We think that sellers might try small hikes in the coming days.”
Higher costs may spur an upturn next month, according to some sellers, whereas others point to the suffcieint availability and unpromising demand due to the Eid Holiday next month. “Prices in China are not surging either. Therefore, no upturn is likely before October. Above all, prominent financial and political problems make Turkey independent from other markets for the moment,” they opine.
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