HDPE prices remain at two-and-a-half year high in Turkey
Higher upstream costs contributed to the increasing trend for PE as crude oil and ethylene prices saw a 3-year high on a global scale before cooling off later in late January. Largely restricted allocations from the Middle East, Iran and Uzbekistan also accelerated the upward momentum for HDPE in Turkey as 2018 started.
Currently, import HDPE film is trading at a premium of around $50/ton over LDPE and LLDPE film, as the weekly average data from ChemOrbis Price Wizard suggest. LDPE prices lost their premium over HDPE for the first time since two years as of late January. LLDPE started to trade at a discount compared to HDPE much earlier in November.
Short supplies continue to keep the near-term outlook strong for HDPE film and b/m, participants think, as the market may not find a quick relief considering the turnarounds at several Middle Eastern plants. “Vivid demand and short prompt supply have pushed HDPE further up this month, rendering it almost a black market recently. Prices are likely to sustain their strength until the off-line plants return from turnarounds by April,” players in Turkey concurred.
A similar scene was also valid in China, where HDPE prices traded with a massive premium of $150-170/ton over LDPE and LLDPE in the week before the New Year holiday given short supplies. The weekly average data unfold that HDPE has never carried such a large premium over LDPE since ChemOrbis started to keep records for China’s import market in 2008. Its premium over LLDPE also pointed to the largest figure since more than 6 years.
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