Mid-Eastern LDPE remains under upward pressure in Turkey
Last week, LDPE film offers for Middle Eastern origins were reported at $1350-1390/ton on CIF, subject to 6.5% duty, cash in Turkey, indicating increases of $40-50/ton from a week before. Yet Middle Eastern LDPE prices remain under upward pressure in Turkey based on the netback to China.
Netback calculations based on China, where Middle Eastern LDPE film prices were offered at $1330-1410/ton CFR China, cash last week, reveal that LDPE film offers for Middle Eastern origins have some room to move higher in Turkey. Deducting a $20/ton freight rate to bring the material back to the Middle East and adding a freight rate of around $80/ton to Turkey, LDPE film prices can be theoretically offered at $1390-1470/ton on a CFR Turkey basis, indicating upward pressure on Middle Eastern offers to Turkey.
Moreover, LDPE film offers for Middle Eastern origins have been reported at $1400-1410/ton on CFR China, cash basis so far this week. If lower prices for Middle Eastern LDPE film do not show up in China for the remainder of this week, the low end of the theoretical levels of $1390/ton on CFR Turkey basis could even be unobtainable, some players argue.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Major LDPE markets touch multi-year highs on growing tightness
- A prospect for Q4 through uncharted waters of 2020 amid pandemic
- China's import PP markets maintain uptrend under shadow of oil-driven losses in Dalian futures
- Weaker domestic demand prompts Vietnam to export polymers
- European PP market ceases upward trend in September
- Force majeure declarations rock the boat in Turkish PVC market
- China’s PE uptrend fueled by US force majeures; LDPE soars to more than 1-year high
- Stats: China’s cumulative PP imports in Jan-July 2020 reach record-high
- Sept PP, PE trend begins to take shape in Saudi Arabia
- Sept expectations voiced in Europe; ABS draws rosier picture than PS