LONDON (ICIS)--Turkish low density polyethylene (LDPE) CFR (cost and freight) prices increased $10/tonne because of higher feedstock costs in a balanced market, while linear low density polyethylene (LLDPE) prices fell $10/tonne because of lower offers, sources said on Wednesday.
On Thursday 12 June, a local producer increased its LDPE prices $20/tonne following a hike in crude because of concerns over the political situation in Iraq.
Subsequently, higher LDPE prices have been heard in the market this week, though the increase was not as large as the producer’s.
“I haven't heard anything more than $10-20/tonne increase,” a LDPE trader said.
Talk of limited availability ahead of a possible shutdown at a local supplier's LDPE plant saw increased demand for LDPE according to some market sources, as buyers took a position and built inventory.
“…because of [the producer being] in shutdown, people will be psychologically buying more. They will ask for more,” the trader said, explaining why some saw demand improving for LDPE.
However, not all sources in the Turkish market said that demand for LDPE was improved, and said the market was balanced.
A weaker lira against the US dollar this week has also dampened buying sentiment, a trader said.
LLDPE prices dropped $10/tonne as a producer and several traders saw lower offers at $1,590/tonne CFR Turkey.
“Demand is a bit slow,” the producer said, adding: “[We see prices at] $1,590-1,600/tonne CFR for LLDPE.”
A major player in the LLDPE market said that the gap between LDPE and LLDPE had narrowed to approximate $10/tonne, with LDPE being higher than LLDPE.
Demand is softer ahead of Ramadan, and cheaper duty-free imports from South Korea may be pressuring Turkish players to keep prices stable-to-low in order to remain competitive.
Also many buyers in the market are waiting for next week when producers are expected to announce July prices.
High Density Polyethylene (HDPE) film prices were unchanged this week.
Prices for LDPE were assessed at $1,580-1,610/tonne CFR Turkey, LLDPE prices were assessed at $1,590-1,600/tonne CFR Turkey, and HDPE film prices were assessed at $1,600-1,610/tonne CFR Turkey, according to ICIS.