Turkey’s domestic producer Petkim offering LDPE and homo-PP at prices close to par

16-Sep-11

Turkey’s domestic producer Petkim is currently offering LDPE and homo-PP at prices close to par after the company’s PP prices had traded with a large premium above LDPE from late June to mid-August, as per ChemOrbis. The company’s LDPE prices had traded with a premium above its PP prices for all of 2010 as well as first few months of 2011, until PP prices surpassed LDPE. Petkim’s LDPE film traded at a premium against the company’s homo-PP for the entirety of 2010, with size of the premium fluctuating between US$50-215/ton. This trend continued in January and February of 2011, with Petkim’s LDPE prices maintaining a premium of around US$100-160/ton over the company’s PP prices. The premium between LDPE and homo-PP fell below US$100/ton at the start of March and homo-PP prices had gained a small premium over LDPE by the end of the month. Homo-PP prices maintained a thin premium of US$10-35/ton for the next three months before the premium on Petkim’s homo-PP prices expanded to around US$40-65/ton from the start of July until the middle of August before LDPE prices regained against homo-PP. The two products have been trading close to par for the past month. The producer lowered prices for both LDPE and homo-PP by US$40/ton this week, keeping the two products roughly at par for another week.