Price and market trends: Turkey polypropylene prices firming

21 April 2014 00:00 Source:ICIS Chemical Business

Prices for polypropylene (PP) fibre have increased $10/tonne because of higher deals, bids and offers, market participants said on 8 April.

A Middle Eastern producer saw increased enquiries for PP over the last week and was able to conclude deals at $1,600/tonne cost and freight (CFR) for fibre, and at $1,580-1,590/tonne CFR Turkey for raffia, although the $1,590/tonne was not seen as representative of the overall raffia market.

“We have seen quite a few enquiries in the last week for PP. We’re [selling raffia at] $1,580-1,590/tonne and fibre at $1,600/tonne – done deals,” the producer said.

A second producer said that the PP market was tighter than last month, justifying its price increases for PP grades it implemented at the end of the week ended 4 April.

Turkey PPSeveral traders in Turkey said that offers for fibre had increased on the back of a slight uptick in demand, with $1,600/tonne being more representative of the market. One trader said that it felt $1,600/tonne for fibre was not achievable, however, and prices were unchanged from the week ended 4 April.

Iranian fibre prices have also firmed because of higher offers from Iranian suppliers who are returning to the market after the Nowruz New Year holiday.

Iranian carriage paid to (CPT) fibre prices were heard as high as $1,630/tonne CPT Turkey, but this was not seen as representative of the overall market.

CFR raffia prices also edged up $10/tonne at the low end because $1,540/tonne CFR Turkey was not seen in the market.

“A reasonable level would be $1,550/tonne [cost, insurance and freight, or CIF] for Middle East PP raffia,” a Turkish trader said of the low end of the range.

Demand for raffia is softer than fibre according to several sources, and there is more downward pressure on raffia because traders are keen to sell off existing stock levels.

Indian offers were heard at $1,560-1,570/tonne CFR Turkey subject to 3% import duty, for late May/early June delivery.

Middle Eastern and Indian raffia prices were assessed at $1,550-1,580/tonne CFR Turkey, and fibre prices were assessed at $1,580-1,600/tonne CFR Turkey, according to ICIS.

By Matt Tudball