Turkey’s polymer markets see modest step backs
Both buyers and sellers preferred to hold a cautious stance to get a clearer idea of the market outlook in the coming days amidst the recent political turmoil which significantly weakened the Turkish lira against other currencies.
In the PP market, no dramatic changes were observed in price levels though discounts appeared from some sellers who wanted to boost their slow sales. “Concerns about rising USD parity kept activity at a standstill this week and cast a shadow on firmer pricing goals of Middle Eastern and Iranian sellers. Purchasing volumes were moderate and on a needs-basis,” opined some players.
Iranian price ranges eased on the low ends compared to last week at $1020-1050/ton for raffia and $1040-1070/ton for fibre, CPT, subject to 6.5% duty, cash. Meanwhile, Russian PP raffia was dealt at $1020/ton CIF Turkey, subject to 6.5% duty, cash, down $10/ton from late last week. Duty free South European PP fibre saw €30/ton discount to be reported at €1010/ton CFR, cash.
A bcf converter said, “We met our limited needs from the local market this week. We are running our factory at 50-60% capacity.”
In the PE market, unstable energy costs as well as softer PE prices in China also cast a shadow on sellers’ higher August sell ideas, with a few suppliers already stepping back from their previous July prices both in the import and distribution markets. A Saudi Arabian major stepped back from its initial July HDPE offers, while other regional sources were already sold out before the latest events.
A Middle Eastern polyolefin producer reported, “We are already sold out for July. Activities would normally be weak as new prices are yet to come out and the market is fragile following the recent events. Players may be more cautious in the coming days.”
A packager reported, “On Monday, local prompt materials saw some hike attempts of $20-25/ton, but shortly after, distributors withdrew their increases given hesitant buying appetite.” A distributor agreed, “Buyers seem to be covered this week as they had already purchased some volumes before holidays and we received extremely limited calls so far.”
A manufacturer, on the other hand, opined, “We don’t expect to see major impacts on the market in the near term as many companies in the plastics industry are exporting their goods. For the medium term, polymer sellers may allocate lower quotas to Turkey and traders might keep their replenishment in check which would result in supply limitations.” The buyer consumes homo PP and PS grades.
Towards the end of the week, import PVC deals came with slight discounts as well. Duty free cargos, including European and Mexican origin with ATR certificate, were sold $10/ton below the levels earlier this week. This was in line with the reports about scarce PVC inquiries from manufacturers given the misty outlook and vulnerable currency.
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