Turkish polymer market hit as riots erupt, currency tumbles

10-Jun-13

Demand in the Turkish polymer market has slumped as riots have erupted in major cities and the local currency has tumbled, as per sources in Platts. "There is instability, and the issue of payments, caused by political unrest. It is very dramatic here. Polymer buying activity has slowed down," a Turkish trader said. One source said the impact on spot polymer prices was limited because of limited availability from Middle Eastern suppliers. "Upward momentum has, however, been choked," the source added. Another source said lower consumption of polymers in April had driven restocking in May which was also supportive of current prices. "Turkey imported 340,000 mt of polymers in April, compared to an average import appetite of 375,000 mt a month," he added. Polypropylene, high density polyethylene and linear low density polyethylene spot prices were flat on the week at US$1597.50/mt CFR Istanbul US$1512.50/mt and US$1502.50/mt respectively Wednesday. Low density polyethylene and poly vinyl chloride posted marginal gains, closing Wednesday at US$1572.50/mt and US$1105/mt respectively. Petrochemical producer Petkim was operating normally at its site in Aliaga, a source familiar with operations said. But he added: "The slowdown in polymer activity is noticeable." Petkim operates a 520,000 m tpa cracker at the site, that feeds into a PVC, LDPE, HDPE and PP plant.