Middle Eastern import PP prices lose ground in Turkey, Egypt

20-Aug-14

Middle Eastern import PP prices lost ground in Turkey and Egypt this week, as per ChemOrbis. The recent softening in PP offers from the region was attributed to sluggish demand as well as softer feedstock costs. Buyers in both countries remain cautious about their purchases citing their unsatisfactory end product demand, with players in Egypt also complaining of electricity cuts in the country that were hampering end production. In Turkey, the upward trend which had been in place in the PP market since the middle of March this year came to an end after prices started to ease towards the end of last week. Following buyers’ reports of receiving slight discounts last week, some sellers also confirmed lowering their prices for various origins this week. The import Saudi Arabian PP price ranges are suggesting decreases of US$20-30/ton week over week. A converter, who received high-end PP fibre offers, reported, “Sellers are conceding to slightly lower levels in return for firm bids and we received lots of calls this week. However, we have sufficient stocks until the second half of September.” A sack manufacturer added, “More suppliers are visiting us recently and they are mostly open to negotiations, but we are taking a wait and see stance as our orders are not so great for the medium term.” Another converter commented, “Shipments from the Middle East and Iran gained speed following the Ramadan holidays. Most buyers are covered these days and they are likely to stay sidelined for a while now that the decreasing trend has started.” A similar trend is observed in Egypt where the import PP market continued to witness discounts on deals for August cargoes. A trader reported, “We sold out our Middle Eastern homo-PP allocation for August. Our supplier was not firm on their prices and accepted bids with up to US$20/ton discounts due to the stagnant market conditions. PP supply is limited in the local market, but demand for imports is moderate due to the cautious stance among players.” According to ChemOrbis, another trader commented, “Most Middle Eastern suppliers conceded to discounts this month and feedstock costs are softening. Therefore, we expect PP prices to be announced with decreases in September.”