Turkish prices for polypropylene and high density polyethylene slumped amid increased product offering from Uzbekistan, as per market sources in Platts. PP raffia prices were assessed at US$975-979/mt CFR Turkey Wednesday, down US$65/mt on the week, a low since February. High density blowmolding and film prices also reached a low (since February) of US$1131-1135/mt, slipping US$19/mt on the week. Offers from Uzbekistan were heard at US$950-980/mt CFR for PP and US$1100/mt CFR for HDPE, subject to 3% duty.
One source said that the market was inundated with offers of HDPE blowmolding and film. The source added that PP demand was poor, which bullish factors like supply disruptions in Europe not producing any upward momentum in Turkey. High density exports from Uzbekistan have grown significantly over the past year, with Turkish HDPE imports from the region rising from 547 mt in April 2015 to 10,704 mt in April 2016. While, Turkish imports of PP increased to 2,618 mt in April this year, compared to zero in April 2015.
Increased exports from Uzbekistan come amid new capacity in the country. Uz-KorGasChemical, a joint venture between Uzbekneftegaz and Korea Gas Corporation KOGAS, Honam Petrochemical and STX Energy, completed construction of its new plant late 2015. The plant has a nameplate capacity of 387,000 mt/year of PE and 83,000 mt/year of polypropylene.