Saudi Arabian PE producers issue additional June drops in Turkey
A Saudi Arabian major applied additional drops on the top of its initial reductions of $80/ton for this month. The producer’s latest LLDPE c4 film and HDPE film offers stand $10-20/ton lower at $1160-1170/ton and $10/ton lower at $1180/ton, respectively, from last week, all on an FCA Turkey, subject to 6.5% customs duty, cash basis.
A manufacturer who received lower prices from the producer reported, “We received slightly lower prices from our supplier. We prefer to purchase hand to mouth on a weekly basis as we feel that demand may not improve much after Ramadan.”
A different global producer also lowered its Saudi Arabian HDPE film and blow moulding offers by $30/ton from their initial June announcements. The seller’s current prices are at $1160/ton FCA Turkey, subject to 6.5% customs duty, cash for both products.
A source from the producer attributed their decision to the presence of competitive Uzbek materials, which have been influencing the market for the last few months. “Activity here has been depressed for some time and polymer markets are showcasing a weak performance. That’s why we reduced our allocation to Turkey. We will conduct an annual scheduled maintenance in October-November and we may not be offering at that time regularly,” the source stated.
Turkey’s PE market has been on a decreasing trend since the middle of April in line with the slumping global trend. The lack of healthy demand from buyers and comfortable availability, particularly for HDPE grades, has left sellers with a weak hand and resulted in steady price declines.
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