Correction: In the ICIS story headlined "Turkish PP prices up $10-30/tonne on higher bids, offers" dated 18 June 2014, please read in the first paragraph ...polypropylene (PP)... instead of ...polyethylene (PE)... A corrected story follows.
LONDON (ICIS)--Prices for raffia and fibre in the Turkish polypropylene (PP) market have increased $10-30/tonne because of higher bids and offers heard for Middle Eastern material, subject to 6.5% import duty, and Indian material, subject to 3% import duty, in what some saw as a tightening market. Iranian fibre bids and offers also firmed this week, sources said on Wednesday.
An Indian producer said that July loading offers for raffia were in the range of $1,630-1,660/tonne CFR (cost and freight) Turkey, but there was no support in the market for prices above $1,640/tonne.
Traders stated that Indian material takes longer to deliver to Turkey, and this may put off some buyers from purchasing, as cargoes loaded in July would not reach Turkey until September at the earliest.
Sources said that the higher raffia numbers may be customers buying direct from producers for July shipment, as no traders had bought at those levels.
In addition, several players reported Iranian fibre prices at a workable level of $1,640-1,650/tonne CPT (carriage paid to) Turkey. While higher numbers for raffia were heard up to $1,670/tonne CPT Turkey, there was not sufficient confirmation from the market to adjust prices this week.
Some saw the PP market in Turkey as tight, with limited material available, putting an upward pressure on prices.
One producer with facilities in the Middle East said that it was short on homopolymer PP, and sees further room for higher prices ahead of Ramadan if crude prices remain firm in what it saw as a tight market.
Chinese import CFR prices for flat yarn (raffia) rose $10-15/tonne in a bullish market, making netbacks to China more attractive for Middle Eastern and Iranian producers.
Higher upstream costs due to the unrest in Iraq added to the bullish sentiment some players held in Turkish prices.
Raffia prices were assessed at $1,590-1,640/tonne CFR Turkey, fibre prices were assessed at $1,620-1,640/tonne CFR Turkey and $1,640-1,650/tonne CPT Turkey, according to ICIS.