Middle Eastern PE suppliers adopt divergent policies in Turkey
The producer cited their limited allocations for Turkey and reported already selling out for August. “We did not cut our prices since we have no sales pressure and instead, we applied some hikes due to LDPE supplies being tight in general. The firming trend turned to a stable trend following the latest political tension whereas China’s PE market is stable and we hope demand will return at some point in the coming month,” a source from the seller mentioned.
According to reports from some packagers, a major Saudi Arabian PE producer applied $40/ton drops from early July levels, which brought their recent prices to $1170/ton for LLDPE c4 film and $1160/ton for HDPE film, all FCA Turkey, subject to 6.5% customs duty, cash.
Overall, Middle Eastern offers were quoted at $1170-1180/ton for LDPE film, $1120-1160/ton for LLDPE c4 film and $1130-1160/ton for HDPE film, all CIF Turkey equivalent, subject to 6.5% customs duty, cash. These ranges were either flat or $20/ton softer on the week for LDPE and HDPE, whereas new announcements drove the level for LLDPE higher from last week when limited prices were reported. This week, deals for LDPE film were reported at $1130-1140/ton.
Players’ weak expectations are based on economic and political factors in Turkey. At the same time, some Middle Eastern sources report tight availability particularly for LDPE grades. A manufacturer also confirmed, “We are experiencing delays for a Saudi origin recently. Plus, LDPE supply at Petkim was said to be limited for some time. Nonetheless, we expect to hear lower prices by September due to hampered demand in Turkey.”
In the meantime, no concerns are voiced about LLDPE and HDPE supplies in the market, amidst sufficient Uzbek materials and expectations about the new Egyptian producer entering the market in the coming months.
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