07 October 2013 13:02 [Source: ICIS news]
BERLIN (ICIS)--Polyethylene (PE) and polypropylene (PP) business remains weak in Turkey and sellers do not hold out much hope for an imminent upturn as the market prepares for the Eid-ul-Adha religious holiday, sources said on the sidelines of the 47th annual European Petrochemicals Association (EPCA) meeting in Berlin on Monday.
“The mood is very negative,” said one trader, “everybody is looking at crude and naphtha.”
“Activity is almost zero,” said another.
Players have been watching crude and naphtha prices fall in recent weeks, as the threat of US-led action against Syria receded, and on Monday naphtha was trading down at $886-888/tonne CIF (cost insurance freight) NWE (northwest Europe).
During the week ending 6 September, naphtha traded as high as $967/tonne (€716/tonne) CIF NWE.
The market was also beset by currency, cash and credit problems.
Some polyolefins sellers were hopeful of improved demand after the holidays as low activity in recent weeks could have led to low converter stocks.
Others disagreed and saw a slow market until the end of the year as buyers expected lower prices to come, and bought as little as possible.
Offers from the Middle East are also limited, however, so while many players expected lower prices, they did not expect them to collapse.
Many PE offers are still quoted in the mid-$1,500s/tonne CFR Turkey, but there were few takers at this level and high density polyethylene (HDPE) grades in particular were also heard below $1,500/tonne CFR.
PP price ideas were still around $1,500/tonne CFR.
($1 = €0.74)
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