Premium PP fibre carries over raffia retreats from all time highs in Turkey
In the second half of May, when a downward trend in prices kicked off visibly in the Turkish PP market, PP fibre suppliers from Iran and the Middle East did not rush to lower their offers immediately. This caused the gap between the two products to climb to an all-time high of almost $85/ton in the first week of June, according to ChemOrbis data.
During that period, Turkey had general elections, which caused a lot of uncertainty as to the political outlook of the country. It was also the period right before the start of Ramadan, which also caused demand to slow.
Since then, the premium on fibre prices has started to retreat in line with the fast decreases seen in the Turkish PP market, a trend that was accelerated by the downturn in China. Iranian and Middle Eastern suppliers have lowered their fibre prices week over week. This caused the gap between the two grades to return to its traditional levels of $20-30/ton, as can be seen from the graph below.
Buyers are still maintaining their waiting stance in the PP market, particularly with bcf makers in Gaziantep, South Turkey extending their Ramadan holiday, which is to be held on July 17-19, until the beginning of August. Many reported plans to conduct maintenance shutdowns during this period in the midst of their unpromising end product orders from export markets in Europe.
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