Turkish players evaluate pre-Newroz supply disruptions from Iran
PP players agree on the fact that availability from Iran has been problematic during the recent months and shipments have slowed down further ahead of Newroz Holiday. “Freight rates from Iran to Turkey were gradually rising since the second half of February amidst a reduced number of trucks being available for transportation,” traders reminded. Under these circumstances, players do not expect an ease on PP supplies from the country until April. A trader reported receiving $40/ton increases from an Iranian PP producer for fibre cargos to be shipped after the holiday. “We have 100-200 tons left for fibre on hand while PP raffia is even shorter from Iran,” he noted.
Shipment issues ahead of the holiday appear to have less impact on PE, however, as players concur that there are plentiful Iranian cargos in warehouses, particularly for HDPE. A trader stated, “We feel that Iranian HDPE is comfortable in the local market unlike LLDPE, which is comparatively limited.” A packager similarly said, “As far as we hear, there are some Iranian materials due to arrive next week. Players already completed their engagements before the approaching holiday in Iran and thereby, we don’t expect a considerable tightness to occur for PE.”
In the PS market, buyers report that shipments from Iran have almost come to a halt this week. “The lack of supplies is especially affecting HIPS, for which prompt availability has already been reduced in the recent couple of weeks. GPPS is rather sufficient in Turkey these days though.” Traders also reported that Iranian PS sources issued slight increases this week after stepping back from their large February hikes at the end of last month. Increase amounts ranged between $15-20/ton, according to players.
Turkey imported around 11,000 tons of homo PP and 2,300 tons of PS from Iran during January 2017, which made the country the third top supplier of both polymers. As for PE, imports of Iranian origin were slightly above 7,600 tons for HDPE and almost 6,000 tons for LLDPE during the first month of the year. Iran ranked as the second largest supplier of Turkey for the two products in January.
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