Turkish traders struggle with delivery issues from Iran
Traders in Turkey confirmed that most sellers suspended their offers for Iranian polyolefins to Turkey as of early this week amidst quite slow bureaucratic process. “We managed to get approval from the Turkish consulate in Iran but we don’t think it will be easy for every company to do that. The situation will cause severe tightness in the coming weeks as there are not much prompt Iranian materials in Turkey these days,” one of them stated.
PP buyers reported receiving higher offers for Iranian origins this week, as a lack of fresh cargos contributed to the firmer August expectations that emerged for PP last week. A bcf converter highlighted, “Iranian cargos have been delivered by ships in the recent weeks and now this approval process is likely to extend the delivery periods further. This will naturally provide an upper end to sellers who were already willing to seek higher levels.”
A PE packager reminded that Turkey previously warned Iran to lift its implementation that obligates an approval on exports from Turkey, while another one said: “We heard that traders are having tough times as they are not able to bring their cargos for which they already paid. Until when this problem will remain in place is still a question mark, with a few players expecting it to be solved in a week.”
Iranian producers are demanding for a solution from their own official executives, saying the recent decision hindered their trading while Turkish executives are also trying to find a solution nowadays, according to players. “There should have been a warning or an exact date given before the decision was brought into force in order to let players get ready. All deliveries have automatically been postponed by a week already while materials waiting in trucks mean an additional cost of $100/ton per day for suppliers,” a player opined.
According to a statement from PAGEV (Turkish Plastic Industry Foundation), the recent regulation have not only resulted in additional costs and a time sink that stems from the bureaucracy but also caused a visible uncertainty in the state of companies whose import materials have already been shipped. “We are currently engaged in talks with the related ministries, chambers of industry and trade as well as TOBB (The Union of Chambers and Commodity Exchanges of Turkey) in order to protect our manufacturers from the possibly negative impacts of this issue and reduce the uncertainties regarding the implementation,” PAGEV mentioned.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Can LDPE uptrend hold in Asia?
- Europe PVC prices lag behind global markets, upward pressure mounts
- PS, ABS markets take respite from rising streak in China, SEA
- Muted demand in Europe paves way for plenty of PP, PE offers in Turkey
- Import PE uptrend persists in China despite bearish winds mounting in local market
- 3-digit hikes in Oct PVC offers reinforce supply-driven bullishness in Asia
- Crude oil caught between demand woes and production disruption
- Tightness drives European PVC market up, prices near pre-pandemic levels
- Major LDPE markets touch multi-year highs on growing tightness
- A prospect for Q4 through uncharted waters of 2020 amid pandemic