Premium on local PE prices over import market narrows in Turkey
As can be seen from the graphic created by ChemOrbis Price Wizard, import LDPE prices have posted steady increases since mid- March while the local market’s gain was relatively smaller. Last week, Middle Eastern LDPE offers were quoted at $1400-1420/ton CFR, cash, subject to 6.5% duty. The landed cost of these import cargoes comes to around $1491-1512/ton after including customs duties. Meanwhile, locally held cargoes were reported at $1510-1610/ton including all applicable costs except VAT. According to ChemOrbis Price Index, average prices in the local LDPE film market are currently carrying a premium of around $50/ton over import prices, whereas this premium was standing above $100/ton in mid-March.
The situation is becoming more apparent for LLDPE film, where the premium has narrowed to around $30-40/ton since the middle of March, according to ChemOrbis Price Wizard. This is because the firmer trend in the local market has been modest for LLDPE film owing to more comfortable stock levels for this product.
Import LLDPE prices were reported at $1350-1400/ton CIF, subject to 6.5% duty, cash for Mid-Eastern origins while the low end was formed by a deal for Iranian LLDPE without slip at $1350/ton CPT, subject to 6.5% duty, cash. The landed cost of these import cargoes come to around $1400-1490/ton after including customs duties. Meanwhile, locally held cargoes were offered at $1440-1515/ton including all applicable costs except VAT. Average prices on ChemOrbis Price Index show that the premium local LLDPE prices carry over import prices is much smaller.
Indeed, given the fact that import cargoes have a customs clearance cost of $30/ton as well as distributors’ margin apart from customs duties, the cost of the recent import offers has even moved above current local LDPE and LLDPE prices, although locally held cargoes should stand above imports under balanced market conditions.
Unlike LDPE and LLDPE, local HDPE film prices have maintained their premium over the import market because of persistently tight supply. The premium of the local market over the import market has been standing at more than $100/ton, according to ChemOrbis Price Wizard, as can be seen from this graph.
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