Saudi major’s March PP, PE hikes see resistance in Turkey
The Saudi Arabian producer’s initial homo PP fibre prices stood at $1240/ton CIF Turkey, subject to 6.5% customs duty, cash. The level represented increases of $50-60/ton with respect to early February levels. “There have been more competitive Saudi Arabian offers from other supplies between at $1220-1225/ton this week. We think the producer’s latest price is not workable, thereby,” a couple of players stated.
The producer revealed its fresh HDPE film and LLDPE film offers at a single level of $1300/ton FCA Turkey, subject to 6.5% customs duty, cash. The new levels indicated $40-50/ton hikes compared to the last February prices reported by Turkish buyers.
A packager who received the recent PE offers noted, “The seller did not sound open to negotiate on those levels. Therefore, we are planning to hear March prices of other regional sources before we decide on our purchasing plan for the month.”
A different player expects the producer to trim its initial hikes by around $30/ton depending on buying interest. “We heard that the producer initially returned with increase attempts of up to $100/ton earlier this week before stepping by $50-60/ton later. Converters are likely to resist those levels or wait for other suppliers to announce their new offers,” players commented.
Supply from the Middle East has been short during the last couple of months while it might ease soon in case regional sources increase their allocations to Turkey, where the current price levels provide higher margins than China for certain products including homo PP, LDPE and HDPE as they were on an upwards momentum since December whilst a weaker trend has been observed in China following holidays.
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