Turkish players report limited prompt LDPE supply
LDPE film prices centered between $1600-1670/ton ex-warehouse Turkey, cash inc VAT for the last two weeks and display a relatively steady view compared to LLDPE c4 film and HDPE film and blow moulding, for which prompt supply is sufficient. “There are prices as high as $1700/ton and above for LDPE grades in the locally-held market. Overall demand remains calm for PE though,” players report.
According to ChemOrbis Price Index, the locally-held LDPE film market lost around $25/ton on a weekly average since the start of August, while HDPE film prices plunged by $55/ton in the period.
A polyolefin trader described the situation saying, “We can call LDPE relatively balanced compared to other PE products as prompt availability is not comfortable. Both f2 and g03 grades are limited these days.”
On the other hand, a distributor who confirms LDPE limitations opines, “Prices may hold stable over the short term for LDPE products, but they may also come down some more if supply eases.” Some players attributed lower availability to reduced supplies at domestic producer, Petkim.
A big bag converter predicted that PE prices will not post major changes until the middle of September even though upstream costs are higher, including for crude oil and ethylene, because of generally hindered buying appetite in the market.
Some distributors believe that the bearish trend is about to end now that import prices recorded smaller drops this week and there is no downwards pressure from other global markets on Turkey either.
Yet, many PE players concur that demand will play a leading role in the future market trend in spite of the bullish feedstock costs in Asia and Europe. The Turkish market continues to face cash constraints while the Eid Holiday around the corner may keep activity muted for much of next month.
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