Petkim reduces PP, PVC prices by US$20-25/mt as demand weakens

26-Oct-12

Turkish petrochemicals group Petkim has reduced polypropylene and polyvinyl chloride prices by US$20-25/mt this week on the back of weakening demand, as per Platts. List prices for polypropylene were lowered by US$25/mt to US$1650-1660/mt FCA Aliaga, and for PVC by US$20/mt to US$1140-1170/mt. Polyethylene prices were unchanged. Demand slowed further this week ahead of the week-long Eid-al-Adha holiday that starts later this week. Most polymer buyers have retreated from the market to wait for expected lower offers for November. Demand is very weak and supply is ample. The seasonal [year-end] slowdown, coupled with the holiday period and the shortage of liquidity, are the factors affecting the market. A trader said some "aggressive" offers from Europe emerged this week - at around US$1540-1550/mt CFR for fiber grade. Another trader said he heard some European products offered at "low US$1500s/mt", but this could not be corroborated in the rest of the market. PVC trading activity meanwhile was reported thin, with sources reporting no bids. Offers were heard around US$1000-1020/mt CFR for European origin K67, while K58 and K70 grades were heard offered US$20/mt higher on average.