Türkiye’s PPH market sees hike attempts, players remain skeptical

The sentiment for PP has slightly improved among sellers in the post-holiday week although cautiousness over the feasibility of any price hikes persisted. Multiple sellers adjusted their homo-PP prices up, saying that prices fell a lot before the Eid al-Fitr, which brought Türkiye’s import market back to balance with prices in China.

“A slight uptick in buying interest also helped suppliers to renew their confidence to some extent. The previous low ends of the market have faded,” affirmed converters.

Saudi Arabian suppliers test higher prices

Saudi raffia and fibre offers emerged slightly higher compared to the pre-holiday week at $1060-1100/ton and $1090-1140/ton CIF Türkiye, subject to 6.5% customs duty, cash, respectively. Nonetheless, buyers’ reaction has been lukewarm so far with no transactions being confirmed at these levels at the time of press. A producer, who raised its list prices by $40/ton, reported, “Demand has been mediocre so far while we pin our hopes on a possible improvement now that the holiday is over.”

“Some buyers have already procured their needs before the holidays at cheaper prices, and they have not been interested in replenishment activity this week. Moreover, the lingering cash flow issues continue to cast a pall on the market,” opined a player.



Feasibility of hikes under question

A sack maker said, “Sellers may step back if demand does not support their firmer goals. We may skip purchases in case of sharp hikes.” Fibre buyers were also unwilling to accept prices above $1100/ton CIF due to the fragile economic scene. A carpet manufacturer said, “We are covered for a couple of months. PP may settle close to April levels as the approaching elections loom over the market.”

A few players argued that the recent falls in the upstream chain and the extended Labor Day holidays in China appear as other factors to watch moving into the new month. Indeed, a Saudi Arabian major announced $10/ton drops for May amid its modest availability and slower-than-expected demand in China.

On the other hand, traders believe that netbacks in Türkiye do not appear juicy for global sellers anymore. Moreover, consumers may prefer to buy some volumes considering the possible rise in the USD/Lira parity in the post-election period. “These factors may support prices,” they added.

Local producer adjusts prices up due to parity

In the meantime, the local producer, Petkim has lifted its prices owing to the easing supply pressure following April sales. The main reason behind the move has been the company’s need to recoup its losses stemming from the USD/Lira parity.

The local raffia range was assessed stable, however, at $1370-1430/ton on ex-warehouse Türkiye, inc VAT basis in the shade of tight liquidity. Distributors plan to monitor whether the recent hike intentions will work in the import market to decide their next move.