Turkey PE, PP prices rise on renewed activity, lack of prompt cargoes
ICIS News : 7-Dec-12 10:42
LONDON (ICIS)--Polyethylene (PE) and polypropylene (PP) buying activity in Turkey resumed this week, following a very slow period that has lasted several weeks, and prices are higher, sources said on Friday.
“Buyers have been consuming their inventories and have now come back to buy,” said an importer of PP.
High density polyethylene (HDPE) and PP availability for prompt delivery are particularly scarce.
HDPE is trading at $1,500/tonne CFR (cost and freight) and above for prompt cargoes, after languishing in the low-$1,400s/tonne for some weeks. PP homopolymer prices are back up to $1,500/tonne CFR, from a low of close to $1,400/tonne CFR in November.
HDPE exports from Iran have been heavily curtailed since the country's government imposed an export ban on 30 October, and while some material has been making it into Turkey, mainly by truck, volumes are still restricted.
Port congestion in Saudi Arabia has also played an important role in limiting volumes into Turkey, but some sellers are now said to be avoiding the congested ports and sources expect deliveries to improve in the coming days.
“It’s easy to get higher prices for prompt cargoes, but there is a lot of material [HDPE] building in Iran right now,” said a trader.
Some Iranian production is said to have been cut back because of the lack of storage facilities as product has been stocked since the export ban.
Sources expect prices to ease once deliveries resume but this has already taken longer than expected.
Turkey is a net importer of PP and HDPE.
($1 = €0.77)
By Linda Naylor
+44 20 8652 3214