LONDON (ICIS)--Producers in the Turkish polyethylene (PE) market are targeting increased prices for July based on an expected firming in feedstock costs, but demand in the market is stable-to-soft in the run-up to Ramadan, making buyers question any attempt in price hikes next month, sources said on Wednesday.
Low density polyethylene (LDPE) cost and freight (CFR) Turkey prices rose $10/tonne at the low end of the range as prices below $1,590/tonne disappeared from the market amid confirmation of deals done at the higher level sources said.
Other spot prices for the week were assessed as stable ahead of July price announcements.
A producer with facilities in the Middle East said it will target increases of up to $30/tonne for its PE business, even though it said LLDPE demand was softening ahead of Ramadan, which begins on 28 June.
A buyer said it expects rollovers from suppliers for high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) grades, again because of soft demand in July, adding that Iranian LLDPE material was available at the previous week's level.
A second producer serving the Turkish market said it will keep its prices stable this week as it does not see price increases as feasible under the current market circumstances.
“There is some slight decreasing/easing in the market because of Ramadan preparations,” the producer said.
This sentiment was echoed by a Middle Eastern producer who said it would attempt increases but does not think the market will accept due to lower demand and ample supply.
“We are looking for higher prices but don't think market is ready to accept. Demand is lower and supplies are good,” the producer said.
Players will be waiting for producers to make official announcements for July prices from the end of the week onwards.Prices for LDPE were assessed at $1,590-1,610/tonne CFR Turkey, according to ICIS.