Nonetheless, derivative segments continued to grapple with tight liquidity while exporters complained about low FX rates that hammered their businesses. “The approaching holiday in Muslim countries coupled with the upcoming summer break in Europe keep markets on edge. Resin purchases have been cautious during the last few days,” a trader commented.
LDPE buyers said, “We prefer to meet our needs from the local market or nearby sources of Europe and Iran, despite their rising offers. It may be risky to have material on the way for autumn delivery given the foggy downstream demand outlook at home and in export destinations.”
Although PP players expect high shipping costs and supply jitters to keep the market firm in the coming term, they pointed to the recent slump in global oil benchmarks, which clouded the market. Also, a source from a Middle Eastern producer admitted seeing disappointing HDPE film and b/m demand, saying, “We may trim our initial price hike.”
According to ChemOrbis Price Wizard, crude oil futures still indicated a weekly fall of $4-5/bbl at the time of writing despite the recent recovery on Thursday. Lower futures caused the upbeat to falter in Asian PP and PE markets, along with adequate domestic stocks inside China, following May gains triggered by soaring transportation costs.
Overall, Turkish polyolefin players hope to see an uptick in derivative demand following the holiday that will be celebrated on June 16-19. Yet, eyes will stay on the energy markets and global PP, PE indications in the coming term.
