Aggressive US LLDPE, HDPE offers stand out in Türkiye

November import PE prices were announced with moderate decreases compared to the previous month, despite a few rollover attempts by Middle Eastern suppliers, which faced resistance from Turkish buyers. Meanwhile, pressure on HDPE and LLDPE grades intensified as more aggressive offers from the US entered the Turkish market toward the end of the year.

According to the weekly average data from ChemOrbis, US LLDPE C4 film and HDPE film currently trade about $50/ton below Middle Eastern CIF cargos. The figure indicates a multi-month high for both products.

Attractive US volumes grab interest, fuel competition

American PE prices have been declining since mid-September, with reductions gaining momentum in October, as the hurricane season and a brief port strike had minimal impact on operations and deliveries. These consecutive drops were expected by market players, given the typical year-end stock clearing. Adding to the downward pressure were subdued downstream demand and liquidity issues that dampened resin demand in Türkiye.

This week, US HDPE film and b/m prices were down by $30-40/ton to be assessed at $930-960/ton CIF, subject to 6.5% duty. Similarly, HDPE inj. was down by $15-25/ton to $925-955/ton while notional LLDPE C4 film softened by another $10/ton to $950-980/ton. Meanwhile, LDPE prices held steady at $1160-1190/ton due to limited US availability. ’Sellers prefer to direct their materials to other markets, particularly Asia, where margins are higher, and demand is stronger,’ multiple players explained.

A global trader remarked, “We have concluded satisfactory deals for US origin material, as recent low prices have stimulated HDPE and LLDPE demand for Q1 deliveries.”



Middle Eastern offers hit $1000/t CIF or below

Regular Middle Eastern producers succumbed to the competitive power of American HDPE and LLDPE C4 film cargos. LLDPE C4 film was down by $20/ton to be assessed at $1000-1020/ton CIF Türkiye, subject to 6.5% customs duty, cash. Aggressive US prices below $950/ton CIF led to a larger loss of $30/ton for HDPE as this product was assessed at $980-1000/ton. As per the weekly average data from ChemOrbis, Middle Eastern HDPE film last stood below the $1000/ton threshold in December 2023.

Middle Eastern LDPE was assessed $10/ton lower on the week at $1130-1150/ton. The pending new offers kept the change amounts limited. Some Saudi Arabian material ready on port was priced at $1120/ton. Yet, this level was not widely confirmed at the time of writing and attributed to some cancelled orders in the previous weeks.

A manufacturer commented, “Regional suppliers were unwilling to offer significant discounts this month, citing unfavorable netbacks in Türkiye. Additionally, a few suppliers approached the market with rollover offers. However, competitive Saudi Arabian materials in bonded warehouses saw stronger demand, and aggressive US volumes added pressure to the CIF market, driving Middle Eastern deals to new lows.”

Price negotiations still underway

A fierce competition between Saudi Arabia and the USA has also been evident in recent years amid rising capacities across the board. In the first 9 months of 2024, ChemOrbis Stats Wizard suggested that Saudi Arabia’s sales to Türkiye were down for most PE grades while the US took the lion’s share for LLDPE.

Negotiations between buyers and sellers are expected to conclude next week, with converters potentially looking to take advantage of the recent price cuts amid higher container costs and stagnant derivatives markets. In Europe, spot PE markets saw suppliers struggling to achieve any gains, as competitive imports and the year-end slowdown outweighed supportive cost factors. In Asia, PE price hikes stalled with the end of the peak season. Looking ahead, the post-US election period will be closely watched, given the potential for trade tensions with China and optimism surrounding the American economy.