Will China’s pressure on Turkey’s PP market remain limited?
Players are now waiting to see new offers from regular suppliers for December shipments; however, the activity remains calm across the Turkish PP market with buyers delaying their negotiations to the PlastEurasia fair to be held next week in Istanbul.
“Crude on NYMEX has been hovering around $40/bbl while naphtha has been mostly stable both in Asia and Europe. Plus, it has been two weeks that import homo PP already broke below the $900/ton threshold in China. This would theoretically make offers to Turkey more than $50/ton below the current offer levels; however, there is no offer near those theoretical levels in reality today in the Turkish PP market. The two markets have to come back into balance and this is possible through price decreases to Turkey,” commented several buyers. A Middle Eastern supplier also affirmed receiving bids $50/ton below his current offer levels to Turkey.
A seller commented, “We do not think that Middle Eastern sellers will lower their prices aggressively as there is not much Iranian supply around. This hinders the negotiation power of buyers. They may concede only to small discounts in deals.” Players have been reporting insufficient supplies from Iran for the past month. “Three major PP suppliers in Iran are still having production constraints. One of them is only offering to its selected customers, the second one is clearing its backlogs and the third one is only offering to its own local market,” argued a trader.
Another trader opined, “The lack of considerable stock pressure as well as the relatively firm stance of the nearby European market may have helped Turkey’s import suppliers keep their offers stable so far; however, I believe that they do not want to lower their prices noticeably mainly because of the lack of firm bids from buyers. They do not want to contribute to a downturn.”
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Asian PVC sees V-shaped recovery in Q2, what will Q3 bring?
- Will capacity additions cast cloud on ethylene upsurge in Asia?
- US PVC offers in Egypt rise steadily but resistance grows in tandem
- PE buyers’ resistance grows in SEA; duty-free origins more competitive than Mid-East
- Polymer demand cools in Turkey: Is price correction ahead for PP, PE and PVC?
- Local PP, PE markets in Indonesia, Thailand, and Philippines follow imports higher
- Taiwanese major’s July PVC pricing exceeds initial expectations
- China’s rising PET trend takes a pause, but longer-term outlook remains firm
- Dalian Futures Market: PP, LLDPE, PVC, MEG
- Vietnam’s homo-PP market plunges to lowest since 2009