Import PP prices in Turkey are ending October on a bearish note similar to other global markets as weak costs, moderate activity and comfortable supplies, particularly for raffia, forced sellers to apply further cuts in the last week of the month, as per ChemOrbis. In fact, import PP prices have plummeted by nearly US$170/ton for raffia and US$135/ton for fibre since early August when the bearish trend began. Import PP raffia prices have already broken below the US$1500/ton threshold for several origins including Saudi Arabian, Indian, Russian and South American. Generally, prices touched the lowest levels in one and a half years, according to ChemOrbis Price Index. Fibre grade offers hit the lowest level of the last one year amidst eased supply concerns from Iran.
Overall activity was quiet this week amidst bearish expectations for the monomer contracts in Europe, the weak scene in Asian PP markets and the Republic Day Holiday in Turkey on Wednesday. Right before the November propylene contracts, that settled €90/ton (US$112/ton) lower on Thursday, new offers of a few Saudi Arabian PP suppliers were reported with decreases. A regional producer revealed their November PP raffia prices for prompt cargos from a bonded-warehouse with US$50/ton decreases from the last October level. Another Saudi Arabian producer’s PP fibre prices were reported with US$30-40/ton reductions month over month.
A Russian producer lowered PP raffia prices by US$20/ton bringing their latest level to slightly below the US$1500/ton threshold prior to the monomer settlements in Europe. “The market remains on a decreasing trend and deals are only concluded for limited quantities,” a source at the producer said. Although there was market talk about lower prices at or below US$1450/ton for this origin in the market, this was not confirmed by sources at the time of publishing.
A packaging converter received an Indian PP raffia offer slightly below this threshold for material that arrived at the port. “We heard that Iranian cargoes started to arrive in the warehouses in Turkey. We feel that prices still have room to move down based on lower feedstock costs,” he argued. A trader also confirmed offering slightly below US$1500/ton for this origin citing the generally weak conditions in the market. According to ChemOrbis, “Buyers are sticking to the sidelines except for meeting their limited requirements at the lowest ends as they believe that more price cuts are on the way. The market may remain sluggish in November,” traders commented. Converters, meanwhile, reported that sellers are trying to destock their prompt cargos recently. Players also think that it is likely that lower propylene contracts will exert renewed pressure on prices in Turkey in case the euro/dollar parity stays low.