06 September 2012 14:10 [Source: ICIS news]
Countries affected by the changes include the Gulf Cooperation Council (GCC) countries, Iran and India.
Low density polyethylene (LDPE) duties will increase from 3% to 6.5%, in line with imports from the USA. Iranian LDPE will also be subject to an increase, on top of its extra tax of 7%. Sources believed that the full import duty on Iranian LDPE into Turkey would now be 13.5% but this was not fully confirmed.
High density polyethylene (HDPE) will now face a 4.8% duty, from its former level of 3%, but this will be increased to 6.5% from 1 January, 2013. Similar charges will also apply for imported PP.
European and Israeli product remains duty free. There will be no change on linear low density polyethylene (LLDPE) duties.
“This is a big blow for buyers,” said a trader. “Middle Eastern material accounts for about 80% of business in Turkey. It will hit them hard.”
Activity in Turkey has been slow in recent weeks, and while prices have increased for September, increases are based on higher costs rather than stronger demand.
There is very little European product offered into Turkey at present as supply has been tight.
($1 = €0.79)
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