27 November 2012 10:05 [Source: ICIS news]
LONDON (ICIS)--Turkish polyolefin producer Petkim has increased its prices for polyethylene (PE) and polypropylene (PP) by $20/tonne (€15/tonne), following similar hikes last week, sources said on Tuesday.
PP prices at the local producer are in the mid-$1,600s/tonne FCA (free carrier) Aliaga, but are said by most sources to be subject to discounts.
PE prices vary between the high $1,600s/tonne to the mid-$1,700s/tonne FCA Aliaga, also subject to discounts.
Petkim was not available for comment, but market sources said activity had picked up as port congestion in Saudi Arabia continued to hamper deliveries, and the resumption of deliveries from Iran was still not complete.
Some offers from Europe have been heard, with PP said to be available at €1,200/tonne ($1,558/tonne) CFR (cost and freight) Turkey, but it is not clear how much product is behind such offers. Other CFR offers are lower, at around $1,460/tonne CFR, as they are subject to duty, unlike European polymers.
High density polyethylene (HDPE) import prices are in the mid-to-high $1,400s/tonne, with only pipe grade above $1,500/tonne CFR, subject to duty.
The Turkish government modified duties on PE and PP imports on 6 September, and HDPE and PP will face a further import duty modification on 1 January 2013, when duties will increase from their current level of 4.8% to 6.5%.
Some players expect buying to increase at the end of the year, so that converters can get hold of material subject to the current duty, while others feel that HDPE prices in particular will be under downward pressure once Iranian cargoes resume a normal export pattern and congestion in Saudi ports eases.
($1 = €0.77)
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