Since last week, activity in Turkey has almost stopped in the face of strong fluctuations in the USD/lira exchange rate. Most buyers chose to stay out of the economy due to the bleak economic situation as the lira hit a record low. However, supply shortages of some products continued to drive up prices in November.

Transport bottlenecks still support polyolefin

The impact of exchange rate demand on the PP and PE markets has been softened by the shipping congestion from the Middle East, Russia and even neighboring Iran that is happening during the working days. the end of October.

One trader said: “The completion time is still long, which should hold the market. PP and PE prices are likely to stay strong next month due to a lack of large volumes unless strong Turkish margins attract global sellers to the country or demand weakens further.”

Finished product manufacturers said: “Some of the previously delayed shipments arrived in October and we expect more stock in mid to late November, which could drive down primary PP prices. sideways weakness without continuing to increase as the new month begins.”

PE consumers also echoed their complaints about the extended transit times from the Middle East due to the still high freight rates from the region to Turkey. One manufacturer noted: “Our LDPE deliveries are delayed until mid-November, however, we think most buyers will be cautious about restocking at the end of the year due to concerns. concerned about the exchange rate.”
Market participants think PP is unlikely to increase in the near term

In fact, the outlook for PE is better than PP. This is simply due to poor final demand and buying resistance that has been going on since late October affecting certain grades of PP.

One market participant commented: “Carpet manufacturers have been facing weakening end product exports for weeks now, although PP fiber purchases have taken place due to concerns about supply in early October. However, buyer resistance and Turkey's spread against some other markets will limit the upside. If demand remains constrained, then PP prices appear to have peaked.”

For imports, Saudi Arabia's raffia and fiber are estimated to remain unchanged at 1770-1790 USD/ton and 1790-1810 USD/ton CIF Turkey, subject to 6.5% customs duty, money. present at the time of posting. Demand to buy any PPH at or above the $1800/ton mark waned during the short working week.

Going forward, market participants will be watching to see if more goods are shipped to Turkey due to lackluster European demand and lower freight rates from Asia to Turkey. slightly from the September peak.

Meanwhile, some buyers expect to see more flexible pricing policies from distributors as slow activity becomes evident in the near future. Several sellers concurred: “The domestic market may slow down in case buying resistance increases.” According to ChemOrbis Price Index, at the end of October, the weekly average price of PP raffia market available in the country hit a 7-month high.