PPBC loses premium over PPH amid weak market dynamics in Türkiye

Türkiye’s PP markets saw modest hike attempts in early July, supported by reduced stock pressure on sellers following bulky purchases in June when Middle East tensions had pushed up upstream and shipping costs. These factors encouraged sellers to seek firmer prices. However, faltering resin demand forced them to trim initial hike targets, particularly at the high end of the homo-PP market.

Meanwhile, PP copolymer sellers had to revise their offers downward on a monthly basis, yielding to weaker dynamics. As a result, the premium of PPBC over homo-PP has melted down, with both grades nearly trading at par as of early Q3.

PPBC injection is widely used in packaging, housewares, automotive, and electrical appliances. Under balanced market conditions, it should be priced above PPH injection prices.

PPBC-PPH inj. delta sinks to two-and-a-half-year low

According to the weekly average data from ChemOrbis Price Wizard, the premium of Saudi Arabian PP block copolymer (PPBC) injection over PPH injection has narrowed to just $15/ton—the lowest level since February 2023.

A global polymer producer said, “We heard that South Korean PPBC injection deals broke below $1050/ton CIF, cash, no duty. This also weighed on the market, increasing competitive pressure on Saudi Arabian cargoes this month.” Traders said their sales have been particularly slow for high MFI PP copolymers.



Sellers: Poor derivatives weigh on copolymers visibly

Polymer markets have been grappling with tighter liquidity over the past months, keeping buying interest tied to needs. This is excluding some short-lived upticks in resin demand triggered by supply chain concerns rather than a real recovery in derivative sectors.

Multiple PP sellers admitted facing a more profound pressure on their PP copolymer sales than PPH grades, attributing this to the lingering lethargy in downstream industries, such as automotive and food container sectors. “High inflation curbed end-user consumption to a large extent while slow purchasing activity and cash constraints caused competitive locally held prices not to fade quickly,” a trader opined.

Another one added, “Unlike PPH converters, PP copolymer buyers manufacture their goods to serve domestic markets rather than exports. Thereby, they have been hit harder by the macroeconomic challenges.”