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Turkish players gauge revised surveillance measures on LDPE imports

by ChemOrbis Editorial Team -
  • 28/07/2017 (08:14)
According to a declaration from the Ministry of Economy, surveillance measures started to be applied on LDPE imports as was published in the Official Gazette on July 26. Previously, Turkey had been applying surveillance measures on LDPE imports by having tax liabilities calculated over a customs unit value of $2200/ton for Iranian goods and $2000/ton for other origins. Now, this customs unit value is reduced to $1350/ton regardless of the origin. The new declaration was enforced prospectively, not retroactively, effective as of the publication date.

Players are now evaluating the possible impacts of this recent change on the PE market. Many players agree that more Iranian offers are set to emerge in Turkey over the coming weeks, consequently.

A manufacturer already received an Iranian LDPE film offer this week after a long time, attributing this to the most recent revision on surveillance measures. “We were not interested in Iranian LDPE cargos before but we may consider consuming it in our production in the coming term now that this origin has gained an advantageous position,” he commented. A large scaled buyer also leant towards the idea and said, “If its price were competitive, then we would purchase Iranian LDPE since supply from some Mid-Eastern sources turn out to be limited from time to time.”

A packager, however, noted, “We don’t have any plans to change our regular sources for the time being given the quality standards. Yet, we believe more Iranian LDPE will arrive in Turkey from now on and this may generally provide a relief in supply levels.” Another buyer does not think the new decision will affect the market much, pointing to the fact that Iran does not have a large LDPE capacity compared to HDPE.

A source from a Middle Eastern PE supplier commented, “We don’t expect the news to have a major impact on our LDPE sales considering the fact that we usually allocate a limited quota to Turkey and distribute it to our regular customers. However, the domestic PE producer might be affected by the latest regulation more than all other sellers.”
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