Price and market trends: Turkish LLDPE, HDPE film prices increase $10-30/tonne

08 May 2014 17:26 Source:ICIS Chemical Business

In the Turkish polyethylene (PE) market, prices for linear low density polyethylene (LLDPE) and high density polyethylene (HDPE) film have increased because of reduced supply and higher confirmed deals, as well as higher offers from producers, market sources confirmed on 30 April.

Turkish LLDPE cost and freight (CFR) Turkey prices have increased $20-30/tonne, and HDPE film prices have increased $10/tonne. Several Middle Eastern producers increased offers by $10-30/tonne, depending on supplier.

Sources said HDPE and low density polyethylene (LDPE) material is limited in Turkey because higher prices in the Chinese market are enticing producers to send material to Asia because of better netback opportunities.

However, LDPE prices have not changed because demand is said to be the weakest of all polymers in Turkey, and even though the market is tight, buyers have sufficient stock levels to meet demand needs.

“[Two Middle Eastern producers] announced $30/tonne increases but we did not buy product now because of low demand,” a LDPE and LLDPE buyer said.

One producer said it was targeting prices of $1,600/tonne for both HDPE and LLDPE, but admitted that no deals had been done at this price because last week’s Chinaplas event in Shanghai.

“Chinaplas delayed converters’ decisions to [buy] material,” the producer said.

Demand levels at the end of April have not improved overall, though a Turkish trader said demand for HDPE had picked up this week. A producer rose its HDPE injection moulding and blow moulding prices by $15/tonne, according to market sources.

Iranian offers were heard, but remain scarce in the market following the Nowruz holiday, and offered prices varied between sources.

By Matt Tudball