12 September 2008 12:27 [Source: ICIS news]
LONDON (ICIS news)--Turkish polymers producer Petkim has slashed its polyethylene (PE), polypropylene (PP) and polyvinyl chloride (PVC) prices twice in a week and cut output at a time of particularly weak demand, a company source said on Friday.
“Demand is very weak. We have also cut back our low density PE (LDPE) and PVC,” the source explained. “Two lines of PVC are down, and one of LDPE.”
Petkim had reduced its selling prices on Monday but made the second cut on Friday.
LDPE was first lowered $120/tonne (€86/tonne) to $1,890-1,900/tonne FCA (free carrier) Aliaga, and Friday saw another $100/tonne drop, leaving Petkim’s new LDPE offers at $1,790-1,800/tonne FCA Aliaga.
PP first decreased $30-50/tonne, and Friday’s new drop of $60/tonne left homopolymer at $1,700-1,730/tonne FCA Aliaga.
PVC fell by $110/tonne in total this week, to $1,230-1,290/tonne FCA Aliaga, depending on the grade.
Petkim cut PVC output by a half and LDPE by a third at beginning of the week, according to the company source. It produces around 310,00 tonnes/year of LDPE and 150,000 tonnes/year of PVC in Aliaga.
“The cutbacks will probably last until the end of the month (September),” he added.
The big question mark in these markets was now over the level of demand that would be revealed in October.
Some selling sources felt that the current low level of demand for all polymers in ?xml:namespace>
Other sources saw a gloomier picture with ongoing weak demand leading to yet more price cuts next month.
($1 = €0.72)
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