06 June 2013 15:52 [Source: ICIS news]
“The lack of buying is not down to a weak plastics situation in itself,” said one trader, “it’s due to the weakening of the currency and general instability and unrest.”
The Turkish lira hit its lowest point since January 2012 and anti-government demonstrations throughout Turkey have led to a drop in activity in many business sectors, including PE and PP.
“Theoretically everything is strong, but nobody’s buying,” said the trader.
Polyolefins prices in Turkey have risen over recent weeks, with low density polyethylene (LDPE) rising more than $100/tonne (€76/tonne) since the end of May, to trade at $1,500/tonne CFR (cost and freight).
PP prices have also risen by over $100/tonne, to trade above $1,500/tonne CFR in early June from a low of $1,390/tonne CFR at the end of April.
European polymers sellers were still offering some material in early June but low offers in evidence in April were no longer available as Europe tightened.
The advent of Ramadan at the beginning of July was also expected to affect buying in Turkey.
“One thing in our favour,” said another trader, “is that stocks with buyers are really low and they will have to come and buy.”
PP and PE are used widely in the manufacture of household goods and in packaging. PP is also used in the automotive industry and PE in the agricultural sector.
($1 = €0.76)
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