Petkim drops PE, PP prices again on poor demand

21 October 2008 17:04  [Source: ICIS news]

ISTANBUL (ICIS news)--Turkish producer Petkim dropped its polyethylene (PE) and polypropylene (PP) prices for the third time in October as converters hesitated to buy, market sources said on Tuesday.

Petkim’s new low density price (LDPE) fell by $100/tonne (€75/tonne) to $1,445-$1,455/tonne FCA (free carrier) Aliaga, while high density polyethylene (HDPE) was brought down by $175/tonne.

The company’s new HDPE price range spanned $1,350-1,415/tonne FCA Aliaga for most grades.

Petkim’s polypropylene (PP) prices were down by $100/tonne, to $1,350-1,370/tonne FCA Aliaga.

Polyvinyl chloride (PVC) fell by $50/tonne to $970-1,000/tonne, depending on grade.

“The market is very weak. Even at these new prices, people will only buy when they have to. Who will buy when they expect lower prices on their way?” said one buyer.

“The market has changed so much,” said another buyer. “Until recently nobody rang me, now they are calling me all the time to sell me product which I won’t buy.”

This situation was echoed across western Europe, where buyers only bought what they needed – and only if the price was right, sources agreed.

PE was widely acknowledged to be weaker than PP. Both reported lower prices, with some PE grades so far losing €150/tonne in October.

But with volumes very low, producers are not convinced that all buyers will achieve their end-year traditional volume rebates.

LDPE domestic monthly prices in Europe have fallen to €1,320/tonne FD (free delivered) NWE (northwest Europe) on a gross basis, but spot prices are weaker, at €1,150/tonne FD NWE, on a net basis.

Overall market sentiment was weak and few expected demand to pick up significantly in the fourth quarter.

($1 = €0.75)

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By: Linda Naylor
+44 20 8652 3214

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