Petkim increases domestic polymer prices $20-40/t

23 July 2007 15:41  [Source: ICIS news]

LONDON (ICIS news)--Turkish polyolefins producer Petkim announced increases of $20-40/tonne (€14-29/tonne) for domestic polyethylene (PE) and polypropylene (PP) prices, with immediate effect, a company source confirmed on Monday.

 

The move was made due to tightening supply and strong offtake, he confirmed.

 

Low density PE (LDPE) contract prices went up by $40/tonne, to $1,670-1,690/tonne FCA (free carrier alongside) Aliaga, while PP raffia and injection grades rose by $20/tonne, to $1,580/tonne on the same basis as LDPE, according to market sources.

 

One large Turkish PP buyer said it would have little choice but to accept the latest offers from the local producer but expected trade to slow down over the upcoming holiday period.

 

Fibre grades, which have been tight for several weeks, were higher, at $1,620/tonne FCA Aliaga.

 

European PP producers have been offering fibre grades at above €1,200/tonne ($1,658/tonne) CFR (cost, insurance and freight) Istanbul but quantities have been limited recently due to production problems and strong demand.

 

Asian offers of polyolefins into Turkey were also curtailed as freight availability and high costs had come into play, while PE and PP were very strong in Europe and import offers from Europe into Turkey have diminished as supply has tightened.

 

Petkim is Turkey’s only producer of PE and PP. Turkey is the second largest importer of PP worldwide, after China.

 

($1 = €0.72)

By: Linda Naylor
+44 20 8652 3214

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