Turkey’s Petkim hikes PE/PP prices as China rallies

22 October 2009 14:54  [Source: ICIS news]

PARIS (ICIS news)--Turkey’s polyolefins producer Petkim has increased its sales prices for polyethylene (PE) and polypropylene (PP) by $20-40/tonne (€13-27/tonne), sources said on Thursday.

The move came after an upturn in activity in the key Chinese market, said sellers.

“In Turkey everybody looks at China and if they start to buy, the Turkish market starts to buy too,” one seller added.

Chinese low density PE (LDPE) spot sales were now at $1,200-1,240/tonne CFR, up by around $40/tonne from first-half October sales. The PP market had not reacted as sharply to high crude oil and naphtha prices.

Petkim’s LDPE price into the Turkish market was now above $1,330/tonne FCA (free carrier alongside) Aliaga. Market sources widely considered this too high at present as lower prices were still on offer from importers. Early October offers from the Middle East had been as low as $1,170/tonne CFR Turkey, subject to an import duty of 6.5%.

Petkim made the upward move due to increased feedstock costs, a source close to the company said.

Naphtha had risen sharply and was trading at $665-675/tonne CIF (cost insurance freight) NWE (northwest Europe) on Thursday.

New PE offers from major Middle Eastern suppliers have not yet been made into the Turkish market for November, market sources added.

PE and PP markets globally still awaited the effect of new capacities from the Middle East and Asia, but for the moment higher crude oil and naphtha costs, coupled with positive economic data from China, supported pricing levels.

($1=€0.67)

To discuss issues facing the chemical industry visit ICIS connect

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly