Skip to content

Filter Options
Text :
Search Criteria :
Territory/Country :
Product Group/Product :
News Type :
My Favorites:

LDPE markets in Turkey and China come back into balance, SEA yet to follow

by ChemOrbis Editorial Team -
  • 10/04/2017 (04:08)
As China’s import LDPE film market has recently found support from the slight firming in local offers amidst increasing futures prices and the import LDPE market in Turkey has been on a bearish trend since early March, the two markets appear to be back in balance. This followed a period of several weeks when Turkey carried a hefty premium over China.

Data from ChemOrbis Price Index reveals that Turkey’s premium over China narrowed to around $30-40/ton for LDPE film on average, which is considered as a healthy gap in terms of freight differences. In mid-March, the premium reached $115-120/ton, the largest since December 2014.

Source: ChemOrbis Price Wizard

A Turkish converter operating in the packaging industry noted, “Our end business is not performing well and we believe PE prices still have room for further decreases in the midst of unpromising demand.”

When it comes to Southeast Asia’s LDPE film market, however, ChemOrbis Price Index data shows that China is still being traded well below the Southeast Asian market. As can be seen from the graph below prepared by ChemOrbis Price Wizard, the import LDPE film market in Southeast Asia is still carrying a hefty premium of around $110-115/ton over China despite the fact that it appears to be declining when compared to a couple of weeks ago.

Source: ChemOrbis Price Wizard

Although Middle Eastern and regional PE producers mostly approached Southeast Asia with decreases on their April PE prices, Southeast Asia has yet to come back into balance with China.

A regional trader commented, “Supplies are sufficient while buying interest is weak. Overseas suppliers are open to negotiations on their offers as Southeast Asia is still offering better netbacks than China despite the decreases.”
Free Trial
Member Login