Will hike targets see acceptance in Turkey’s polyolefins markets?
Polyolefin suppliers have been expressing their intention to lift the market up since last week as PP and PE prices have been lacking a premium over China during the last couple of weeks. Accordingly, Middle Eastern and Iranian sources attempted moderate hikes this week which caused the previous low ends to fade away, with some of them citing their limited allocations for Turkey.
A source from a global producer reported, “Our sales for LDPE are a bit better than for PP. We don’t have much Middle Eastern allocation for Turkey since we prefer to direct our materials to Africa and the Middle East considering the low netback in the Turkish market.”
Another regional supplier voiced higher PE sell ideas for September. “Price decreases seem to have stopped. LDPE prices hint at small gains given supply limitations, while we hope to conclude our LLDPE and HDPE deals close to our sell ideas at least,” the seller stated. Another Middle Eastern PE producer expects LDPE could gain $10/ton while he thinks that other PE grades could see rollovers if not price hikes on transactions.
However, manufacturers did not hurry to purchase any material beyond their immediate needs so far. According to buyers, sellers are trying to bring the market back into balance with China, while they don’t think that these hike targets will materialize since the Eid Holiday is around the corner.
“We are aware that the market sentiment is shifting, but we already purchased some material at attractive prices early last week,” a carpet maker commented. PE packagers were skeptical about hike intentions on the horizon, saying, “Cash issues, political tension and nearing holiday will probably keep end business hindered. We don’t foresee a real upturn for PE at the moment.”
Spot propylene and ethylene prices have posted remarkable increases both in Europe and Asia due to the higher energy complex and some cracker shutdowns across the board, which provide support for a firmer trend. However, some players don’t think a sustainable upturn is likely until after the Eid Holiday in September. “Prices may only see small upwards corrections as demand is still hesitant and China is not rising. Moreover, players in Turkey will enter a holiday mood starting from next week,” they comment. A trader opined, “PP and PE markets may witness modest hike attempts, while supply-demand dynamics will determine whether those targets will see acceptance or not depending on the product.”
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Styrene prices sink to multi-month lows in Asia and Europe
- European PET posts double-digit decreases for October
- PVC downturn gains pace in Asia on Taiwanese major’s larger-than expected drop
- Asian spot propylene regains premium over ethylene for first time since 2013
- Import LDPE, LLDPE prices almost back at par with ethylene in China
- Turkish players voice early PP, PE expectations for November
- Thin buying cushions impact of PVC shutdowns across Europe
- China’s PP market makes a strong start to post-holiday period
- Asian ethylene-naphtha spread narrows to 3-year low
- Local PVC markets plunge in India, Southeast Asia