13 June 2013 16:03 [Source: ICIS news]
LONDON (ICIS)--Turkish polyethylene (PE) and polypropylene (PP) activity has been hit hard by uncertainty over social and political unrest, in spite of the local currency strengthening for the third consecutive day on central bank action, sources said on Thursday.
“The market is not quiet,” said one trader, “it is very very quiet.”
Sources did not see much price erosion for the time being, but they expected this to occur if demand did not improve.
“Another factor affecting demand is Ramadan,” said another trader. Ramadan is due to start on 9 July, when the market traditionally slows down over the holiday period.
“People are not going to build stocks in such an uncertain situation,” said one of the traders. “They don’t know what they’re going to come back to after the holidays.”
The Turkish polyolefin market was not awash with offers, however.
“There’s not much cargo behind Saudi offers,” said the trader.
Availability of Iranian PE was said to be on the rise, however, and while producers were loath to drop prices, the traders said it would be impossible to maintain current pricing levels if they wanted to sell any volume.
HDPE prices were assessed around the $1,450-1,500/tonne (€1,088-1,125/tonne) CFR (cost and freight) level, and PP price assessments remained around $1,500-1,530/tonne CFR.
Continued tensions between protestors and the government were expected to lead to continued uncertainty in the Turkish polymers market and beyond.
($1 = €0.75)
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