Turkish PE, PP prices up for December

06 December 2013 16:22 Source:ICIS News

ISTANBUL (ICIS)--Turkish polyethylene (PE) and polypropylene (PP) prices are moving up in December, sources said at the 23rd edition of Plast Eurasia Istanbul 2013 conference on Friday.

“I was offered $1,570/tonne (€1,146/tonne) CPT [carriage paid to] yesterday, up from the last offer of $1,540/tonne last week,” said a high density polyethylene (HDPE) buyer.

“$1,550/tonne [CFR] is the lowest offer I’ve seen in the past couple of days,” said a PP buyer whose recent offers had been around $1,520/tonne CFR (cost insurance freight) Turkey.

It was not clear how much business was being done at the new levels, but higher offers were  widespread and some PE grades were tight, particularly low density polyethylene (LDPE) and linear low density polyethylene (LLDPE). High density polyethylene (HDPE) availability from Iran was also tight. Sources put this down to a raft of minor production issues that tightened the market.

Buyers were waiting for new December offers from some of their suppliers, and general y expected levels to be higher.

Sentiment at the Istanbul plastics fair was upbeat. “Look at all the faces smiling,” said one trader.

Prices and activity in Turkey have been languishing in recent months as currency,  credit and cash issues have affected the market  but buyers seemed to be coming back to the market.

Another trader added a word of caution, however.

“This is good as long as Asian buying remains good, if that eases, so will activity in Turkey,” it said.

Middle Eastern suppliers are said by sources to be favouring sending material to Asia at present as logistic costs are far lower than to Turkey and netbacks better.

The plastics fair lasts until 8 December.

($1 = €0.73)

By Linda Naylor