Skip to content




Markets

Asia Pacific

  • Africa

  • Egypt
  • Africa
  • (Algeria, Tunisia, Libya, Morocco, Nigeria, Kenya, Tanzania, South Africa)

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

Players report tight LLDPE supply in Turkey

by ChemOrbis Editorial Team - content@chemorbis.com
  • 13/01/2020 (15:07)
Turkey’s PE market started January with price increases most of which passed on transactions. This was largely expected by players based on unhealthy netbacks based on China’s import market.

Dwindling supply was another factor that gave an upper hand to sellers during their price negotiations with their customers. “We received $40-60/ton hikes from December triggered by the absence of US, Iranian and Uzbek suppliers on the top of restricted quotas from Middle Eastern producers. HDPE film was sufficient, but LLDPE appeared tight,” said players.

A source from a Middle Eastern reported, “We closed our sales shortly after revealing our January prices thanks to our short allocation and good demand. We had small volumes particularly for LLDPE c4 film.”

Similarly, a Saudi Arabian major was reluctant to trim its initial hike requests for LLDPE, unlike for HDPE film. “The producer easily finished its quotas amid an increased number of inquiries and tightness for materials without additive in the market,” a player noted.

Not much material from Iran was available since January started, moreover. “Iranian offers were rare and unworkably high. Concerns over a supply disruption arose albeit for a short time amid last week’s geopolitical tension between the US and Iran,” said participants.

Looking ahead, tight supply may ease once the previously purchased US PE cargos start to arrive Turkey during the next few weeks, some players argued. Still, the market is likely to remain tight for LLDPE over the near term.

According to ChemOrbis Price Wizard, the weekly average of local LLDPE market soared 16% just over the past 2 weeks, while HDPE film rose by 14% in the same period.

The distribution channel soared $50-70/ton for LLDPE and $40-50/ton for HDPE week over week. Notionally, HDPE and LLDPE rose to $1120-1180/ton and $1150-1180/ton, respectively, all ex-warehouse Turkey, inc VAT.
Free Trial
Member Login