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Middle Eastern PE producers announce Nov prices in Turkey

by ChemOrbis Editorial Team - content@chemorbis.com
  • 02/11/2016 (09:17)
In Turkey, regular Middle Eastern PE suppliers started to voice their official list prices for November this week. Regional producers approached the market with increase requests, as was expected considering reduced availability from the region due to the low netbacks compared to China’s import PE market.

A Saudi Arabian major revealed its November PE prices at $1190/ton for LLDPE c4 film and HDPE film, FCA Turkey, subject to 6.5% customs duty, cash. This level indicates $30-40/ton increases over October for both products. A packaging converter reported, “The supplier has very limited HDPE film quotas. We will not be able to procure our whole monthly requirements this month.”

A global producer voiced its official Saudi Arabian LDPE film offers at $1240/ton CIF Turkey, subject to 6.5% customs duty, cash, up $20-30/ton from the last October levels. “We are only able to supply our contract based customers right now as we are mostly sold out,” a producer source said. An agent of a second Saudi Arabian producer revealed its new LDPE film offers at $1210/ton with the same terms. “Although the upstream chain showed a downwards trend in recent days, we hear that Asian PE markets are vivid which paved the way for firmer prices for the month. Plus, Turkey’s import PE markets were trading below China in recent weeks particularly for LDPE,” the seller commented.

In the meantime, a different Middle Eastern producer is seeking smaller hikes of around $10/ton on the month. The supplier’s most recent offers are standing at $1220/ton for LDPE film, $1150-1160/ton for LLDPE c4 film and HDPE film, all on CIF Turkey, subject to 6.5% customs duty, cash basis. “We may push for further increases albeit in modest amounts depending on buyers’ reactions,” a source from the seller stated.

Apart from sellers’ preference to direct their PE cargos to other markets that provide healthier netbacks, PE supplies in Turkey are also affected by a couple of plant shutdowns in the Middle East. Saudi Polymers Co. shut its Al-Jubail petrochemical complex with a capacity of 1.1 million tons/year for a planned maintenance on October 1 for 60 days. PetroRabigh also started a turnaround at its 900,000 tons/year PE plant in November in line with a cracker maintenance in Saudi Arabia. The plant produces 300,000 tons of HDPE and 600,000 tons of LLDPE per year and is expected to be offline for three weeks.

Between limited PE supplies, recently lower upstream costs including for naphtha and spot ethylene in Asia and higher prices in Chin, a particularly for LDPE amidst tightness, some Turkish players believe that demand will be a key factor to determine the hike amounts that will pass on done deals.
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