Abundant supply prompts Petkim to reduce LDPE, HDPE, PP list prices

25-Sep-14

Turkish petrochemical producer Petkim has announced a reduction in its list prices for low density polyethylene, high density polyethylene and polypropylene, due to more competitive offers from Europe following the weakening of the euro against the dollar, as per sources in Platts. LDPE, HDPE (injection, blowmoulding, pipe), and PP list prices were down by US$25/mt, US$25/mt, and US$15/mt, respectively. LDPE and PP prices were reduced to US$1805-1830/mt FCA Aliaga, and US$1760-1785/mt. HDPE injection, blow moulding and pipe were reduced to US$1775/mt, US$1785/mt, and US$1815/mt. The fall in Petkim's prices came following the recent trend of increased PP and PE product moving to Turkey, which led to a fall in Turkish prices. Petkim was not immediately available to confirm. PP raffia prices, in particular, were said to have collapsed on a glut of product coming from the Middle East, sources said, with offers heard at US$1520-1530/mt Turkey. The greater flow of PP and PE to Turkey was driven partly due the fall of the Euro against the dollar, which fell to US$1.2832 on Monday, a low not seen since July 9, 2013. It was also driven by the weak demand in the European PP and PE markets. This low demand was due to bearish October contract price expectations following the recent slump in feedstock naphtha, which closed Monday at US$831.75/mt CIF NWE.