Reduced supplies push Uzbek PE offers up in Turkey

Import PE prices received support from reduced supplies for another week in Turkey amidst limited quotas from Middle Eastern suppliers. A scheduled turnaround at an Uzbek source has affected the HDPE market in particular and drove film and blow moulding prices north for this origin.

In a weekly comparison, Uzbek HDPE film prices moved up by $10-30/ton to $1120-1140/ton CIF Turkey, subject to 6.5% customs duty, cash. With prompt materials at bonded-warehouses diminishing, a limited quantity was offered as high as $1180/ton FCA later this week following prices talked at $1150/ton late last week. HDPE b/m prices were reported $30-40/ton higher at $1130-1140/ton with the same terms.

Players reported that fewer channels would be supplying Uzbek PE to Turkey in the days to come. “There is market talk that 3 traders will halt their distributing on contract basis over the coming term which means less Uzbek material will enter the market even after the maintenance ends,” some commented.

An agent of the Uzbek source confirmed to ChemOrbis, “Fewer traders will be bringing Uzbek material to Turkey as the producer aims to focus on alternative export markets where better netbacks are obtainable.” The source from the agent further added that the maintenance shutdown is expected to end by October 12, whereas it will take time for the Uzbek plant to stock up and no offers or shipments are likely until early November.