LONDON (ICIS)--Linear low density polyethylene (LLDPE) and high density polyethylene (HDPE) film prices in Turkey have dropped $10/tonne because of lower offers heard in a bearish market, sources said on Wednesday.
Done deals in the market were very limited this week as many players are waiting for producers to officially announce their September offers.
One major Middle Eastern producer is not expected to announce its September Turkey prices until after the European ethylene contract has settled.
A trader of Middle Eastern material said it had dropped its LLDPE prices $10/tonne because of softer demand this week ahead of the announcements.
One buyer said it will look for a reduction of $20-25/tonne for LLDPE and HDPE film prices from suppliers next month.
However, one Middle East producer is looking to roll over its LLDPE and HDPE prices because of a lack of availability, it said.
Expectations of a drop in September prices are receiving further strength by the ongoing weakness seen across the LLDPE and HDPE market as a result of several factors.
However, one Middle Eastern producer said there appeared a slight improvement in its LLDPE demand levels, possibly as a result of buyers substituting low density polyethylene (LDPE) for LLDPE if Turkish LDPE producer Petkim was not able to supply as a result of the 105 day expansion programme on its cracker at its facility in Aliaga.
LDPE prices were stable even though LDPE demand levels are not necessarily strong. The idea of a possible limit of LDPE supply from Petkim has kept bids and offers unchanged from last week for the majority of the market.
There was an exception, with one trader selling Middle Eastern LDPE at $1,670/tonne CFR (cost and freight) Turkey this week, though this deal was felt to be an exception in the market.
Iranian LDPE offers were heard at $1,660/tonne CPT (carriage paid to) Turkey, subject to a 6.5% import duty.LDPE prices were assessed at $1,630-1,650/tonne CFR Turkey, LLDPE prices at $1,600-1,630/tonne CFR Turkey and HDPE film prices at $1,600-1,630/tonne CFR Turkey, according to ICIS.