LDPE from West Europe offered at almost €1000/ton in Turkey

05-Jan-10

West European producers have spiked January LDPE offers to Turkey as compared with the last reported price levels to €970-1000/ton CFR Turkey, cash as per Chemorbis. A source at one West European producer reported a hike in prices to €1000/ton, that was met with resistance from Turkish buyers for now. The offer is up €130/ton from their November offers, but the producer had not been in the market during December. Fewer West European LDPE offers were heard in the region in December due to tightening supplies region and shorter working days due to holidays. Offers in December from West Europe were around the level of €930/ton CFR Turkey. This indicates that current offers are up around €40-70/ton. A buyer was offered material from a different West European producer at €970/ton. He commented that prices are rising due to high monomer prices and the rising price trend in Asia. He feels demand is good in Asia which could cause difficulties to find material from that region. At current rates, the new January LDPE offers from West Europe work out to around US$1392-1435/ton CFR Turkey. The Turkish producer is currently offering LDPE at US$1480-1500/ton FCA Aliaga, cash not inc VAT. In the distribution market, sellers are concluding deals at a level of US$1475-1483/ton ex-warehouse basis, cash not inc VAT. In comparison to the local market, the West European offers appear to be competitive even when accounting for additional clearing and handling charges.