The Turkish polymer markets are expected to remain bearish in the near future on political issues following an attempted coup, sources said this week.
"The polymer markets are really quiet, and there are still a lot of political problems. We are struggling to sell, and there is only hand-to-mouth buying," one trader said this week.
Following a failed coup attempt on July 15 by a wing of the Turkish army, the country has seen demand for polymers fall along with the strength of its currency.
Subsequently lower offers to the region have done little to reignite it.
"Prices from Iran are really low but we are still struggling to sell," a trade source said Wednesday.
Sources do not expect current fundamentals to change until mid-September when the almost week-long national holiday of Eid al Adha, also known as Kurban Bayrami, takes place in Turkey.
"Maybe after Bayram the market situation will be back to normal but for now I see nothing happening," a trade source said.
The Turkish lira began to fall to record lows against the dollar days after the coup attempt and has yet to show any significant rebound. Turkey's import-heavy polymer industry now faces a major challenge with the weaker lira.
The country was already facing a weakening economic situation, with economic growth dropping below 2% over the last year and it has come as no surprise that recent geopolitical unrest is likely to have made the situation worse.
Total demand for polymers -- polyethylene, polypropylene, polystyrene, Polyethylene terephthalate and polyvinyl chloride -- in Turkey is around 5.5 million mt/year, but domestic polymer production is about 770,000 mt/year. Imports, therefore, account for more than 80% of commodity consumption.
Offers across all polymers have been heard lower this week.
Offers for low density polyethylene have been heard lower this week at $1,140/mt CFR, ex Middle East before duty.
LDPE prices were assessed Wednesday down $2/mt on the week at $1,212/mt CFR Turkey, a low not seen since the end of March.
A local producer was heard looking to sell LDPE into Europe amid diminished Turkish demand, but without success. "European prices are lower than their offers," a trade source said.
Polypropylene raffia prices were assessed down $26/mt Wednesday at $1,012/mt CFR, while PVC prices in Turkey were at $848/mt CFR Wednesday, down $22/mt week on weak.
The polystyrene market had also suffered from the recent political turmoil in Turkey.
The price of general purpose polystyrene fell $75/mt on the week to be assessed at $1,145/mt CFR Turkey Wednesday, the lowest since February 10.
Demand for all polymers had been expected to pick up after Ramadan celebrations finished in early July.
The GPPS CFR Turkey price fell, despite prices being steady to firmer on the week in other regions.
In Asia, the GPPS CFR China price was assessed at $1,149/mt Wednesday, up $9/mt on the week. In Europe, the GPPS spot price was assessed steady on the week at Eur1,240/mt FD NWE. A source said offers in Europe were rising, which may lead to higher prices in the next few weeks.
