Turkey’s PP, PE markets at a standstill amid lingering downturn
PP and PE prices have mostly recorded a new series of price cuts this week in Turkey in tandem with relentless drops in major global markets. The low season, coupled with a lack of supply concerns, has kept purchasing volumes hand to mouth ahead of the rerun of the elections in Istanbul on Sunday.
Turkey’s import PP market has followed a bearish path since mid-May as buyers restricted their purchases due to seasonal factors. This was also in line with the downward trend in China driven by high domestic stocks and intensifying trade war with the US.
“Fibre season already faded while we expect our end product exports to lose steam due to the approaching summer holidays in Europe,” a carpet manufacturer noted. A global trader affirmed, “We were ready to accept lower bids from our customers taking the unpromising demand into account. Buyers are even shying away from engaging in prompt materials these days.
PE faced pressure from competitive US, Asian cargos
Import PE offers posted further declines as rapid drops for American origins forced regular Middle Eastern suppliers to apply new drops. According to the newly launched ChemOrbis Origin Based Price Indexes, LLDPE and HDPE film recorded the sharpest decreases, as they shrank by $100/ton since mid-May against a drop of $55/ton for LDPE film. “Relatively limited supply for LDPE kept the decrease amounts in check,” opined players.”
Plus, Indian and Korean offers exerted extra pressure on sellers as they offered competitive edges for LLDPE, HDPE film and HDPE pipe 100 due to Asia-led price cuts.
Recent political events in Turkey have had a negative impact on already weak Turkish polypropylene (PP) and polyethylene (PE) demand during a time when buyers should be stocking up for Ramadan, sources said this week.
Demand in Turkey is poor and prices have been falling in recent weeks as buyers have retreated to the sidelines because of uncertainty in both the PP and PE markets.