Petkim drops Turkey PP again as market weakens

03 September 2008 11:07  [Source: ICIS news]

LONDON (ICIS news)--Turkey’s sole polymer producer Petkim has dropped its polypropylene (PP) price by $90-100/tonne (€62-69/tonne) for September, making a total fall of $260/tonne since the beginning of August, market sources said on Wednesday.

Petkim’s new price for homopolymer raffia is $1,800/tonne CFR Turkey, while homopolymer injection grades were at $1,810/tonne CFR.

These new prices remained above the prevailing market rate, however, as material from the Middle East was heard offered at $1,750/tonne CFR Turkey, subject to a 3% duty.

New offers from Europe were reported at the equivalent of $1,720/tonne CFR Turkey. 

Although there was no confirmation from any western European producer source of an offer at this level, several said that export opportunities were becoming limited as price ideas fell globally.

“There’s just too much material on offer. The market is being clobbered by new capacity from the Middle East,” said one would-be seller, adding that the recent drop in oil prices had affected the market.

Asian PP prices were under similar downward pressure, with imports offered into China at $1,700/tonne CFR.

Europe had been firmer, and producers even managed to increase prices by €30/tonne in August, but buyers’ expectations were now for lower prices.

($1 = €0.69)

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By: Linda Naylor
+44 20 8652 3214

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