Turkish players: Dutiable homo PP is set to see $1200 CFR
Russian offers are reported in the raffia market at levels as low as $1250-1280/ton with the same terms. As for Iranian fibre, several buyers said, “We could easily obtain $1300/ton if we were to place firm bids. But we didn’t want to go for it as we are not willing to buy even if the price goes down to $1300/ton from the current levels of $1340-1350/ton CPT, subject to 6.5% duty, cash.”
Netback calculations based on China, where homo PP was offered at $1085-1215/ton CFR, cash, reveal that a large room for price decreases remains possible for homo PP offers to Turkey. Deducting $20/ton freight costs to bring the material back to the Middle East and adding a freight rate of around $70/ton to Turkey, homo PP prices can be theoretically offered at $1135-1265/ton on a CFR Turkey basis.
Therefore, players also believe that the market will break below the $1200/ton threshold soon with some of them deeming the $1100/ton level to be possible.
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