Turkey spot PP, PE prices firmer ahead of higher duties in Jan: sources
London (Platts)--5Dec2012/1221 pm EST/1721 GMT
Spot polyethylene and polypropylene prices in Turkey were firmer this
week as buying appetite picked up ahead of the increased duties that will
take effect next month, sources said.
From January 1, import duties for high density polyethylene and
polypropylene will rise to 6.5% from 4.8%. This is the second part of the
two-stage hike the Turkish government announced in September, when duties
were immediately raised from 3% to 4.8%.
The new duties were imposed on imports coming from developing countries
and the Gulf Cooperation Council, which groups together Saudi Arabia, the
UAE, Qatar, Oman, Kuwait and Bahrain. Saudi Arabia has consistently been
Turkey's biggest source of imported polymers, contributing half of the
country's overall imports for many grades.
One trader said demand so far in December has been "far better" than
October and November, mainly due to expectation of increased prices in
"People want to get materials as soon as possible," another trader said.
The rebound in the European and Asian spot markets also helped shore up
sentiment in Turkey, and this supported a widely held belief that the
domestic market has reached the bottom of the cycle, sources said.
Most sources, however, felt buying remained short term, with most
business for polypropylene heard done at $1,470-1,490/mt CFR Istanbul subject
to duty. "Some trucks [polypropylene] were heard offered at around
$1,510-1,520/mt," a trader said, noting that buying activity was " mainly
"Underlying demand is still weak," he said, adding that the market could
quiet down again as it approaches the year-end holidays.
HDPE prices were heard at $1,460-1,520/mt CFR Istanbul, subject to duty.
"Converters want their product from Middle East to clear customs before
January 1 to save on taxes," a trader said.
Turkish producer Petkim increased list prices this week by $20/mt for PP
and HDPE film to $1,665-1,675/mt FCA Aliaga and $1,740/mt respectively.
--Monicca Egoy, firstname.lastname@example.org
--Nandita Lal, email@example.com
--Edited by Maurice Geller, firstname.lastname@example.org