Turkish polymer players sidelined prior to Sunday’s elections
In the PP market, most expectations center on rollovers for July although prices edged down in some cases this week due to the ongoing holiday mood and cautiousness prior to elections. The recent ease-off in the import PP fibre and local PP raffia markets were interpreted as a response to the lack of trade with some sellers, who are in need of cash, conceding to slight discounts. “We already expected the market to remain silent following Ramadan due to elections,” suppliers highlighted.
Large traders opined, “Any price levels that were talked this week would not be representative as they are not for new shipment cargos and the market has been at a standstill with elections being right on the corner. Yet, our Saudi Arabian source is set to roll over its homo-PP prices to Turkey, according to the most recent guidelines we received.”
Buyers also expect to receive mostly rollovers for next month, saying, “We don’t foresee additional increases for Turkey’s PP market in July, looking at the slight softening in China. June hikes were barely accepted while many manufacturers, particularly fibre converters in the south region, will keep their factories down until after elections.” Nonetheless, no PP drops are predicted either based on rising propylene prices in Europe, players concurred.
In the meantime, poor demand amid volatile economic dynamics and the decreasing trend in China led to softer expectations for PE. “Business has been quite slow in the recent days since players’ attention has been largely shifted to the elections. If buyers who were postponing their purchases return to the market, PE drops might be moderate,” opined a trader.
A similar scene was valid for PVC, with buyers keeping their trading volumes to a bare minimum, blaming scarce fresh orders following the Ramadan month. “We are only meeting our needs for now while we hope to see improved end demand from the construction sector depending on the post-elections scene in Turkey,” a manufacturer mentioned. The lack of US cargoes following the additional tariffs applied by Turkey as of June 21 is also likely to support sellers in the coming term, players noted.
PS and ABS players, meanwhile, expect the market to stay under the pressure from unsupportive upstream chain and hesitant activity. Sellers failed to achieve their June hike requests due to mounting resistance from buyers, with a trader saying, “No major drops are foreseen though as limited prompt supplies for Iranian origins might counterbalance unpromising demand to some extent. Besides, converters might be more active following the elections.”
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