Turkish polyethylene (PE) prices dropped $20-30/tonne because of weakening demand, lower confirmed deals and bids and offers, and bearish market sentiment, market sources said on 5 February.
Prices above $1,580 CFR (cost and freight) Turkey for low density polyethylene (LDPE) and $1,570/tonne CFR Turkey for linear low density polyethylene (LLDPE) and high density polyethylene (HDPE) film were no longer workable, players on both the buy and sell side agreed.
“We have announced $1,590/tonne [CFR Turkey] to the market; however, this is not workable for the time being,” an HD and LLD producer said.
A local producer said that LD and HD film prices were stable this week following a $35/tonne and $25/tonne drop, respectively, on 27 February. It added that demand for all three PE grades was slack.
Demand is still weak, with some saying it has weakened further since last week ahead of the regional elections in Turkey on 30 March. Many expect demand levels will remain unchanged until after the elections.
A trader said that, seasonally, demand should be picking up in most markets, but payment problems and lack of credit being offered to buyers from banks has limited activity, reducing demand in the Turkish PE market overall.
Iranian product was very scarce, and CPT (carriage paid to) Turkey prices have not moved due to limited bids and offers heard in the market. Several factors limited the amount of Iranian material on offer, including the approach of Nowruz, the Iranian New Year holiday that commences around 20 March.
“[Iranian suppliers] are also selling to China like crazy. In [the] next two weeks there is New Year in Iran – [the country will be] done for a month, so don’t think we’ll hear any Iranian [offers] until mid-April,” a trader said.