Turkish LDPE falls, nears par with HDPE

23-Sep-11

Turkey’s domestic producer Petkim lowered their LDPE prices for the second time in September this week, bringing the company’s new LDPE prices close to par with their HDPE prices, which have not been changed since August 1 as per the plastics pricing service ChemOrbis. LDPE has been facing stronger downward pressure than other PE products in the Turkish market recently owing to ample prompt LDPE supplies, with most players predicting that LDPE film prices will witness steeper decreases in October than LLDPE or HDPE film prices. From March 2010 to the beginning of July of this year, Petkim’s LDPE prices traded with a premium of at least $100/ton over HDPE, with the premium standing comfortably above the $200/ton threshold from the last few months of 2010 until mid-June of this year. After initially dipping below the $100/ton mark at the start of July, the premium on Petkim’s LDPE prices has been dwindling rapidly in the first few weeks after the end of the Ramadan holidays as per the plastics pricing service ChemOrbis. As of this week, Petkim’s LDPE prices are carrying only a small premium of $10/ton over HDPE and this premium is set to fall further in the coming weeks as players believe that the producer could announce another LDPE price reduction soon given weak demand and ample supply for LDPE in the Turkish market. Poor demand and ample stock levels inside the country have pushed some Turkish sellers to look to nearby markets in the Mediterranean region as outlets for their LDPE. Turkish LDPE film was reported in the Italian market this week at a price standing close to the low end of the overall spot LDPE film range in Italy. The dollar equivalent of this price after adding freight calculations stands below Petkim’s current offers to the Turkish market. Turkish LDPE film also appeared in the Egyptian market this week at a price close to the lower end of the overall range for locally-held LDPE film in Egypt.