Chemorbis Report (2019)

Chemorbis Report (2019)

20/09/2019 Share
 Chemorbis Report (2019)

Turkey PE Market

May PE hikes trimmed under shadow of waning demand in Turkey

Highlights

  • Turkey set for partial rerun of elections in June
  • PE demand wanes on 7-month low TRY/USD
  • Saudi major withdraws initial May hikes
  • Some PE buyers see small discounts likely
  • Spot ethylene slightly rebounds in Asia
  • US ($/ton): LDPE 1040-1050 | LLDPE 1030-1040 | HDPE film 1080-1110 CIF
  • Mid-East ($/ton): LDPE 1070-1080 | LLDPE 1040-1070 |HDPE film 1130-1150 CIF
  • Local ($/ton): LDPE 1450-1480 | LLDPE 1330-1430 | HDPE film 1430-1480 inc VAT

General Outlook

In Turkey, economic uncertainties came to the forefront as TRY/USD parity hit a-7 month low. A recent political turmoil added to Ramadan lull and almost halted trade. Many players elected to stick to the sidelines with purchasing amounts appearing only hand to mouth.

More Middle Eastern producers approached the market with moderate hikes for May, including a Saudi major. However, they were forced to step back in response to stiff resistance from manufacturers. “The Saudi major’s latest levels indicated rollovers from April,” a packager said.

Overall, the Middle Eastern ranges were at $1070- 1080/ton for LDPE, $1040-1070/ton for LLDPE and $1130- 1150/ton for HDPE film, CIF Turkey, subject to 6.5% duty. The ranges gave what they gained in the previous week as prices particularly on the high ends were not accepted by players.

Egyptian PE showed up with at $1215-1220/ton for HDPE film, b/m and $1140-1160/ton for LLDPE, all FCA, cash no duty. European LDPE stood at €1050-1080/ton ($1175-1209/ton) CIF.

In the pipe market, meanwhile, US pipe (PE 80 materials) from bonded-warehouse showed up at $1150-1180/ton subject to 6.5% customs duty.

The local LDPE retained strength at $1450-1480/ton inc VAT. LLDPE and HDPE film were respectively at $1330- 1430/ton and $1430-1480/ton. Prices for nearing materials pushed the low ends lower.

Import availability continues to be limited for most PE products. Nonetheless, economic concerns are likely to dominate the market in addition to the upcoming holiday and election. “We expect more sellers to concede to discounts if counter bids are placed considering the uncertainties in the market. Plus, China is weighed by renewed a tension with the US and lower futures market,” a buyer argued. Reference Prices